Find out what influences land prices and what the average price per acre is of land.
Our land is suitable for a number of current uses including; grazing, farming and paddock conversion or for general recreational or amenity purposes. However, due to a rise in land prices over the years, land has become a popular and tangible asset that is seen as a 'safe-haven' for investors, typically outperforming property and shares.
Farmland values rose by an average of 3% in England during the first six months of 2020 because of historically low supply and pent-up demand.
The market sentiment at the start of the year was one of optimism following an end to some of the political uncertainty that had been slowing the market. Despite an unsettling few months the appetite to buy land has not been diminished.
Conversations with buyers point to many seeing land as a safe asset class in which to invest at times of uncertainty – a trend seen in the past.
There are many national and international factors driving land price higher, including:
Global economic uncertainty
A predicted 40% rise in world population by 2050, resulting in;
Increased demand for food and therefore commodity prices
These sharp increases in food prices continue to encourage farmers to expand production
A weak pound has buoyed the market, making land more attractive for overseas buyers
Overseas buyers, lifestyle purchasers, investors and farmers all competing for land for sale
Increasing demand outstripping an extremely limited supply of land
At present the rise in land prices is partly due to the ongoing economic troubles in Europe and other parts of the world – in fact the ongoing global economic troubles only seem to enhance farmland's reputation as a safe-haven asset. With no clear end in sight to the problems there is a strong desire to get money into something solid and tangible. As land prices rise, buyers can use their asset for a number of uses from farming to grazing and paddock conversion or for recreational or amenity purposes.
Looking to buy land? Call our land consultants now on 01582 788870
Do you have land to sell? Call our land buying team on 01582 788879