FARMS & ESTATES
This year has shown strong demand for country property, with many considering a total lifestyle change – farms and estates offer ever-evolving business and leisure opportunities
Farms & Estates
2020 begun with huge optimism, with only Brexit negotiations to be concluded before the UK had to set its course for life outside the EU. No one could quite imagine what was around the corner – but by the same token no one could have predicted how market activity bounced back in the manner it did. Land prices remained at pre-Covid levels and in several cases strengthened significantly. Whilst volume of property on the open market was constrained, 50% less than the preceding 12 months, a significant amount transacted privately. The strongest appetite was for sizeable farms and estates. Farming and the management of our countryside will change significantly over the next decade, but we believe the value of land will hold firm and most likely strengthen.
The average price for agricultural land per acre is the same as it was a year ago (2019 Q3)
The percentage increase in price for an acre of agricultural land over the past decade.
Ten-year performance index; farmland versus other asset classes (Q3 2010-20)
The average cost for a hectre of bare agricultural land in the UK, as of September 2020. The figure is up on the average cost of £17,235 per hectare in September 2019 but down from £20,524 in September 2015.
The 50-year increase in the £ per acre price of farmland.
The average price for an acre of bare agricultural land is £7,000 as of September 2020.
The Knight Frank Farmland Index tracks the average price of bare (no residential property or buildings) commercial (productive arable and pasture) agricultural land in England. The quarterly index is based on the opinions of Knight Frank’s expert valuers and negotiators; the results of actual sales conducted by both the firm and its competitors; local market knowledge; and client and industry sentiment.
There has been a 16% increase in the price of farmland during the last five years.
Data provided by Chris Druce, Senior Analyst, Residential Research