Farmland values hit £8000/acre in some parts of England, according to new county by county figures from Knight Frank
Date: 22nd July 2008 | 
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Key highlights:
- Pasture and arable land hits £8000/acre in parts of England
- Prime arable land worth on average £6000/acre across England
- Pasture land worth over £5300/acre on average
- Regional hotspots for arable and pastureland
- Limited difference between prime and average soil values
Andrew Shirley, head of rural land research at Knight Frank, comments:
" It is already well known that land values are increasing, but these new and unique county-by-county figures, show where the regional hotspots are and some of the results are quite surprising.
Across the country, prime arable values, driven by increasing food and oil prices, are routinely topping £6000/acre, but the highest values are in the south-west of England – an area known more its livestock than crop production. However, these are small, sought-after pockets of excellent land used for high-value crops like early potatoes, which benefit from the mild spring weather in counties like Cornwall.
The most expensive grassland is to be found at opposite end of the country in Cheshire and Berkshire, where the best pasture is making £8000/acre. Berkshire attracts wealthy lifestyle buyers looking for attractive amenity land, while Cheshire boasts some of the best growing conditions for grass and is prime dairy-farming country.
What these figures show is the demand for all types of land in England is still extremely strong. The limited amount available to buy means the difference in price between top-quality and average soil is relatively small.
Despite the credit crunch that is affecting other property sectors, agricultural land is still in demand from a wide variety of buyers. There are a number of funds in the market prepared to pay premium prices for the few parcels of land they are able to buy.
The big question is how long can this trend continue? My feeling is that prices will continue rising but we have already seen the strongest period of growth. However, farmland certainly isn’t a bubble waiting to burst and in these uncertain financial times is still likely to appeal to investors looking for a safe home for their funds and farmers wanting to expand their acreages.”
For further information, please contact:
Andrew Shirley
Head of rural land research
E: andrew.shirley@knightfrank.com
T: 020 7861 5135
M: 07779 585 313
Davina Macdonald Lockhart
Knight Frank Residential PR
E: davina.macdonald.lockhart@knightfrank.com
T: 020 7861 1033
M: 07796 996 154
Notes to Editors
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 over 165 offices, in 36 countries, in six continents. For further information about the Company, please visit www.knightfrank.co.uk
The Knight Frank Farmland Market Index is a valuation based index, compiled quarterly from valuations prepared by professional staff in Knight Frank’s Farms & Estates Department offices in the UK. The index is based on the valuation of a comprehensive basket of properties throughout all UK regions based on actual sales evidence.
About 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.
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