Farmland prices hit another record high

Photo:   John5199

Farmland prices in England have hit another record high, according to the Royal Institution of Chartered Surveyors.

The RiCS report found that values jumped 15 per cent year-on-year in the final half of 2013, with the average cost climbing to £7,754 per acre across the six months.

The cost of land is now 14.3 per cent higher than during the same period in 2012, driven by a continuing surge in demand from farmers looking to expand faced by a low supply of land available for sale.

With many areas having been subject to severe flooding in recent weeks, it remains to be seen what impact this will have on the price and saleability of farmland in some areas.

Land values have now hit a record high for the ninth consecutive period.

Prices are expected to continue climbing in the coming 12 months, fuelled by the supply-demand imbalance. The impact of flooding, though, which could affect both prices and sales, is yet to be seen.