Home    //    News    //    Increased Demand for ‘Lifestyle’ Farmland
Increased Demand for ‘Lifestyle’ Farmland

Increased Demand for ‘Lifestyle’ Farmland

15th September 2014

According to the RICS/RAU Rural Land Market Survey for H1 2014, the cost of farmland in the UK increased by 3% in the first half of this year to £9,594 an acre.

Farmland has quadrupled in value since 1994 (when RICS first began recording rural land market data) at which point land cost £2,028 per acre. The price growth in the last decade has been driven primarily by farmers but a revival in residential or ‘lifestyle’ demand has started to drive demand in the past year.

This increase in lifestyle and residential demand for farmland started to grow at the end of 2013 having been fairly flat since 2008. This coincides with the broader turnaround in the UK housing market.

Demand also remains strong on the commercial side, particularly from farmers keen to expand production onto neighbouring plots. With increased demand for farmland from both the commercial and residential markets, investors are increasingly seeing land as an economic safe haven and, according to RICS, 44% of chartered surveyors expect prices to rise in the next 12 months.

Sibley Pares Chartered Surveyors can report an increase in demand for land generally within Kent with plots selling more quickly and at a higher value per acre than in recent years. For further information about buying or selling land, including development land and farmland, contact us on 01622 673086 or email property@sibleypares.co.uk.