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.”
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).
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Act receives Royal Assent