Buy land – they’re not making it any more

The latest findings up to the end of June this year show a 7 per cent increase in value to a new all time high of £6,115 per acre. This increase comes, according to Rics, mainly from commercial farmers boosted by rises in commodity prices.

And the survey carried out within the Rics membership has produced a prediction that the top has not yet been reached, with expected further demand in the market pushing to new levels.

The latest findings show a threefold increase in land values in the past decade and a half. This prompted Richard Liddiard of Carter Jonas in Newbury to remark: “Land alongside gold remains the prime asset class identified as a safe haven in the still turbulent financial market.”

Possibly linked to the new high prices for land, the survey also confirmed that the acreage of land up for sale is at its highest level for three years but surveyors and estate agents said the market was still undersupplied.

With a larger percentage of lower grade land, Scottish land price figures have been put by Rics at an average of £3,813 per acre.

James Denne of Knight Frank, based in Lauder, said that one problem was that sometimes sellers were “too optimistic” in their evaluations of their properties.

One or two properties had been taken off the market as a result, whereas when realistic values were placed on properties, he said they often were sold quickly.

Denne valued grade three one land between £6,500 and £7,000 per acre but said it was noticeable that when small parcels of land came on the market and there was neighbour interest, these valuations could be surpassed. Larger blocks of land were slightly stickier in selling, he added.

While interest in livestock properties had lagged behind arable ones in the market over the past couple of years, the situation was now levelling up as a result of better prices for both cattle and sheep.