Costs of agricultural land rising in England
Published 19/10/2010 | 05:00
Prices for agricultural land in England have risen by 17pc in the past 12 months, a new survey has revealed.
The average price of English farmland is now £5,816/ac (€6,609/ac), according to the latest Knight Frank Farmland Index.
Land prices in England have been on an upwards trajectory for almost two years, with prices surging by 24pc between early 2009 and mid-2010.
However, prices began to slow between July and September this year, with farmland values increasing by just 0.8pc in the third quarter of 2010.
This takes growth over the past 12 months to 17pc, according to the latest results of the Knight Frank Farmland Index.
Andrew Shirley, head of rural land research at Knight Frank, maintained the slowdown was not surprising.
"Even though agricultural commodity values are currently performing extremely strongly, this slowdown is hardly surprising. No sector of the economy is likely to escape the impact of the coalition government's spending review later this month and the UK's economic recovery is still uncertain," he explained.
"The fact that farmland prices still remain at record highs shows how resilient the market is and we believe that the flattening seen in the past three months is a slowdown rather than the beginning of any significant decline," he said.