£10000 an acre in sight for land prices

 

03 9월, 20:40www.darlingtonandstocktontimes.co.uk

FARMLAND prices in the North-West reached £8,813 an acre in the six months to June – the highest in the country.

 

 And the Royal Institution of Chartered Surveyors (RICS) said prices in the North-East had more than trebled over nine years – reaching £6,438 an acre compared to £2,169 in 2004.

 

 The RICS said the growth had been been driven by an ongoing surge in demand from farmers and investors alike.

 

 Interest from potential buyers started to grow steadily at the beginning of 2007, with hikes in commodity prices leading the charge to expand agricultural operations, and investors increasingly seeing land as an economic safe haven. With bare farmland so sought-after, the six months to June saw availability remain flat.

 

 While the North-West recorded the highest prices, the lowest increase was Scotland, although the £4,438 was still a record high for north of the border.

 

 North-East surveyors expect rapidly-growing land prices to continue.

 

 David Coulson, of Addisons Chartered Surveyors, said: “Despite the challenges of the past 12 months, the land market has remained robust.

 

 “There have been a number of strong sales of bare land and equipped farms in the first half of this year, with farmers at the forefront.

 

 “There has also been a great deal of activity from neighbouring purchasers, which has led to premiums being achieved and a variance in prices.”

 

 The lack of supply remained a factor in the region, but banks were continuing to lend freely to agriculture and that availability of finance was providing the power to fund large commercial purchases.

 

 Sue Steer, spokesperson for the RICS , said: “The growth of farmland prices across the North-East in recent times has been nothing short of staggering.

 

 “If commodity prices continue to increase and keep demand high, there’s no reason why we won’t see the cost per acre going through the ten thousand pound barrier in the next two to three years.”