Demand continues to rise

A survey carried out by the Royal Institution of Chartered Surveyors for 2010 showed that there was a shortage of available rural land. With the level of demand having increased through the year this has meant that values have remained strong.

The results of the survey showed that demand for farmland continues to rise, and that the increase in demand was much stronger for non-residential farmland than for residential farmland. The downturn experienced in the housing market has filtered through to the residential element of farms.

 

Luscombe Maye sales success
A notable residential farm that was sold by Luscombe Maye in 2010 was Higher Lipton in East Allington. This comprised a detached contemporary dwelling together with some general purpose outbuildings, stabling and some 38 acres of grassland. This sold off an asking price of £1,050,000 to a buyer from out of the area.

 

Supply imbalance
Anecdotal evidence from surveyors suggest that commercial farmers are still keen to expand production and are willing to pay a premium in order to do so.

 

Meanwhile, the supply of land continues to decline and, as stated previously, the increase in demand is leading to an increase in prices.

 

Numerous blocks of bare land ranging from pony/amenity paddocks, 1 acre up, to blocks of 60 acres have been sold by Luscombe Maye through 2010 with very good prices being achieved in most instances.

 

Amenity/pony paddock land has been selling for up to £30,000 per acre, whilst the larger blocks of commercial land have been reaching £6,000 per acre.

 

Some prices look set to rise further
Looking forward, surveyors expect farmland prices to continue to rise over the next 12 months as a result of the supply/demand imbalance, but prices are expected to rise more sharply in the commercial farmland sector.

 

Stuart Hext MRICS, FAAV
Partner: Residential and Rural Property
T: 01548 830831  M: 07971 217899
E: stuart.hext@luscombemaye.com