Gloucestershire farmland approaches £10,000/acre and offers local landowners a huge opportunity, says Knight Frank
Date : 14 July 2010
Key highlights:
· The average price of farmland sold in Gloucestershire by Knight Frank in the past 12 months was almost £9,000/acre
· Two farms within 12 miles of Cirencester have sold for £10,000/acre excluding farm buildings
· The average price of farmland in England is £5,769/acre, according to the Knight Frank Farmland Index and £5145/acre according to the latest figures from the Royal Institution of Chartered Surveyors
· Knight Frank says demand for farmland in Gloucestershire is outstripping supply
The English farmland market has shown remarkable resilience compared to other asset classes during the recession with average values increasing by 20% over the past 12 months, according to the Knight Frank Farmland Index. The index is now at an all-time high of £5,769/acre.
Farmland in Gloucestershire and other parts of the Cotswolds, however, has outperformed the rest of the county with the average price achieved by Knight Frank over the past 12 months hitting £8,842/acre. Two estates within 12 miles of Cirencester were sold for over £10,000/acre.
“In 2006/07 land values stood at £3,500 to £4,000/acre in Gloucestershire and the Cotswolds. Now, at £8,842/acre on average, values have more than doubled in just a few years.
“Land in the Cotswolds and Gloucestershire is a rare and sought after commodity. Supply is limited and demand remains strong. When land comes onto the market in the area, it presents a once in a lifetime opportunity to buy.
“Gloucestershire offers some stunning countryside, and a train journey into London Paddington of just one hour. Commuters can travel from door to desk in under two hours. People also like to own tangible assets such as farmland in these tough economic times.”
“The benefit of farmland being exempt from inheritance tax has been
a boost to sales in the Cotswolds and Gloucestershire areas.
“Landowners in the area now have the opportunity to benefit from prices being 34% higher than the national average, and with many of the purchasers being private individuals, landowners can sell discreetly, with limited publicity, on timescales that suit them.
“Now is a good time to sell land because the future for interest rates remains uncertain. Low interest rates offer a false level of security for people who have geared up against their land. When interest rates rise, that gearing will really begin to hurt.”
For further information please contact:
Atty Beor-Roberts, head of Cirencester office, Knight Frank, +44 (0) 1285 659 771
Clive Hopkins, head of farms and estates sales, Knight Frank, +44 (0) 20 7861 1064
The Knight Frank Farmland Market Index is an opinion-based index, compiled quarterly by professional staff in Knight Frank’s Farms & Estates and Valuations offices in the UK. Farmland is defined as bare agricultural land with neither dwellings or buildings on it. To see all Knight Frank’s rural research please go to www.knightfrank.co.uk/rural
Knight Frank’s Farms and Estates team sells land, farms and estates across the UK. For more details and a full list of properties currently available please go to www.knightfrank.co.uk/rural
Knight Frank Residential Research provides strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, financial and corporate institutions. All our clients recognise the need for the provision of expert independent advice customised to their specific needs. Knight Frank research reports are also available at www.knightfrank.co.uk
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 207 offices, in 43 countries, across six continents. More than 6,340 professionals handle in excess of US$886 billion (£594 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.