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.
The average value of farmland is rising at the fastest rate since 2014 as land prices increased by 14% over the year.
We are now in a situation reminiscent of the 1970s when inflation also soared. During such periods, investors often seek out assets classes that act as inflationary hedges. Gold is one, but farmland, which is a more tangible asset and subject to less price volatility, is arguably a better option.
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