Demand for farmland continues to outstrip supply
STRONG demand for commercial farmland continues to keep prices high, according to new data.
The RICS Rural Land Market Survey for the first half of 2012 found the average price per acre in the region now stands at £6,938.
This figure has more than doubled since the beginning of 2006.
RICS said surveyors across the country report that a shortage of available land is a key factor in driving up prices.
With supply low national transaction levels dipped to their lowest level since the start of 2006. During the first six months of the year there were just 115 transactions, down from 298 in the second half of 2011.
Most areas in the North West saw a steady increase in land prices, whilst surveyors in the West Midlands reported the highest levels during the first six months of the year, meanwhile those in Scotland were the lowest.
RICS North West spokesperson, Graham Bowcock of Northwich-based Berrys Valuers and Surveyors says: “Farmland prices continue to remain at an all time high and very few transactions in the region went through last quarter.
“The main reason behind this was that the amount of farmland coming onto the market simply couldn’t keep up with demand from commercial farmers who are looking to expand.
“With commodity prices now having risen for some time, and the situation looking unlikely to change for the foreseeable future, we expect price rises will continue their upward trend over the next coming year.”
