office national statistics

British farmland prices rises to record level

Bloomberg is reporting that the value of farmland in the UK is rising to record levels as farmers increase production to take advantage of rising livestock and wheat prices.

 

This follows a report by The Royal Institution of Chartered Surveyors that says land prices have effectively doubled in the last five years, and that generally farmers are taking the view that they would rather keep land and increase production, rather tham simply sell land.

 

This means the value of the land will rise significantly as production increases and so therefore does the value of the land.

 

According to the UK Office for National Statistics, wheat prices in the UK have grown eleven percent in the last year and whilst meat prices have gone up by just over seven percent in the last year.

 

According to the RICS, arable land has gone up by just under five percent and pastures by just over four percent since the end of last year.

 

According to another report by Knight Frank, farmland in the UK  has gone up in value over three times in the last decade, which outperforms all other types of real estate in the UK.

 

Links :

Bloomberg

Royal Institution of Chartered Surveyors

UK Office of National Statistics

Knight Frank

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