Farmland values in the UK have remained relatively stable over the past 18 to 24 months, the latest data from the Savills Farmland Values Survey shows. This is somewhat striking, because the supply has reached an all-time low in the same period.
As a result of the corona crisis and Brexit, the supply of agricultural land in the United Kingdom has fallen to a historic low in recent months. Through September 30, only 38.509 hectares have been offered on the public market, with more than half offered in the period between July and October. The fact that the market then revived somewhat is easily explained. The country then carefully emerged from the lockdown. It is all the more striking that the value of the land has remained relatively stable over the past 18 to 24 months.
Stability remains predominant
New data from the Savills Farmland Values Survey shows that the average land price in Great Britain (the combination of arable land and grassland) remains unchanged at €18.134 per hectare. The so-called 'first-class arable land' currently costs €23.556 per hectare. The price of arable land in class 3 has only increased by 0,2% in recent months to €19.851 per hectare and the price for grassland in the same class is unchanged at €14.595 per hectare.
This stable trend is not only visible in Great Britain, because soil rice has also remained stable in the Netherlands over the past period. From the most recent data from the Land Registry shows that the average price for agricultural land in August was €53.297 per hectare. The price for arable land for the same month is €65.217 per hectare and the price for grassland is €50.805 per hectare. Although prices in the Netherlands fluctuate more than in Great Britain, the price for arable land has long fluctuated around €70.000 per hectare and that of grassland around €55.000 per hectare.
Agricultural land increasingly interesting
Alex Lawson of real estate agency Savills in the United Kingdom says that more and more city dwellers are finding their way to the British countryside. It is one of the reasons why the land price here has remained stable. "A factor in this is that agricultural land has outperformed British shares, gold and bonds in the 7 years following the global financial crisis. For investors, this is a reason why agricultural land is becoming increasingly interesting."