Farmland prices soar to highest levels
09/08/06

Farmland prices have reached the highest levels in the survey’s history reports the RICS rural land market survey published today. Rising 9 percent year on year in Q2, sales activity is nearing a four year high.

Following the resolution of the Single Farm Payments scheme in the CAP reform package, demand in both the residential and non-residential sectors has greatly exceeded supply, with demand for commercial farmland remaining robust – fuelled by Irish farmers buying into the market this quarter and prices rising strongly. The rise in residential farmland continues to reflect this year’s housing market boom, with strong city bonuses sustaining amenity and lifestyles buyers.

The availability of farmland in both the residential and non-residential sectors also continued to build momentum. Non-residential land outpaced that of residential land, rising at the fastest pace in the survey’s history. More farmland has come on to the market, helping sales activity to rise by 77 percent, the highest levels since Q3 2001.

Chartered Surveyors predict that the residential market will remain buoyant, spurred by a strong economy and housing market. Expectations for commercial farmland has seen surveyors make upward revisions in light of the single farm payments issue being resolved.

Commenting RICS spokesperson Sue Steer said: “Resolution of the single farm payment issue has pushed land onto the market, increasing sales activity. Investment from Ireland and elsewhere has led to demand outstripping supply. With Irish land being sold for residential development, Irish farmers are taking advantage of relatively cheap farmland in the UK.

“Residential farm land is still however attracting lifestyle buyers as town dwellers attempt to escape from the madding crowd, pricing locals out of the market.”

About RICS

RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 120,000 members globally and represents, regulates and promotes the work of property professionals throughout 120 countries. RICS is governed by a Royal Charter approved by Parliament which requires it to act in the public interest. It is also a professional regulatory body approved by Government (HM Treasury).

RICS UK housing market survey, June 2006
Farm Property Auction Exceeds Expectations
Commons Act receives Royal Assent