News Brexit
This is the effect of Brexit on the land market
Due to the impending Brexit, the price of land for good quality land will rise, while lesser land will be more difficult to sell. The market is also calm, as buyers and sellers wait to see what the consequences of Brexit will be.
The gap between demand for good, productive land and lesser land has been widening for some time in the United Kingdom (UK). However, this trend has intensified as direct payments from the Common Agricultural Policy (CAP) will be phased out message FGinsight.
Hectare support phased out
After Brexit, direct income support in the UK will gradually be phased out, because the CAP policy is based on the EU. Instead, there will be a form of support for agricultural entrepreneurs in the UK, which is more focused on the delivery of public services.
Land users pre-sort this by selecting the better bunkers. If there is less hectare support, it is better to have fewer but more productive hectares than many hectares that are less productive, or so the idea. That is why there is extra demand for the most productive land, local brokers note.
Falling land price due to Brexit
The price of land in England and Wales has fallen by 4% in the last 12 months. On average, € 3.2414 is paid per hectare. This is due to the fact that many entrepreneurs are hesitant about Brexit.
Nevertheless, there are certainly candidates for land in the UK. This concerns investors who convert money that they have invested in housing into investments in land. The land price is relatively low by European standards and is often a safe investment in times of political uncertainty, according to local real estate agents.
Anne-Jan Doorn
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
