Brexit could drive up English land prices

The price of land in England has declined over the past 5 years, but remained stable at the beginning of 2019. This is mainly due to the wait-and-see attitude on the part of both buyers and sellers, which is caused by the Brexit. Local real estate agents report that Brexit could cause a reversal in the land market.

The price of land in England has fallen by 3% compared to last year. This is according to figures from the Knight Frank Index. The land price is now moving around €20.000 per hectare, at the current euro-pound rate. The price of land has therefore fallen by 5% over the past 5 years, but has increased by 10% in the past 50 years.

As no decision has been made on Brexit in the end, uncertainty in the land market remains. That's why Andrew Shirley, the researcher at Knight Frank, thinks the next Brexit decision will cause a price rally.

Grassland vs arable land
Shirley does say that the price drop of last year (-3%) can be restored. This is because demand arises again at that time. However, the difference between the price for grassland and arable land will increase. This has to do with the fact that dairy farmers will suffer the most from Brexit due to the disappearance of subsidies.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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