Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Sat
Oct 25th
Lost Password? Register
Home arrow News arrow Europe arrow Farm land prices in Scotland double in five years

Farm land prices in Scotland double in five years

Monday, 16 July 2012

Image

The average value of Scottish farm land has almost doubled over the past five years, according to the latest Knight Frank Scottish Farmland Index.

Top quality arable land is now worth just over £7,053 an acre, with ploughable grassland at £3,600 an acre and hill land at £614 an acre.

Farm land values rose by 3% on average during the first half of 2012, slowing slightly in the second quarter of the year with prices increasing by just 1% but the prediction is for further growth in values of 3% over the next 12 months.

‘People are still positive about farmland, but they are being slightly cautious at the moment.  North of the border we tend not to see as much activity from investors as in England. Most of our buyers are farmers and they take a fairly canny view when it comes to buying more land. Anything that is too fully priced runs the risk of attracting limited interest,’ said James Denne, head of farms sales in Scotland.

‘I think if investors were aware of the quality of some of the arable land here and the strong demand to rent or contract extra ground they might be looking further north. Every time I put a farm on the market I always get plenty of phone calls from neighbouring farmers or contractors looking to spread their fixed costs,’ he added.

Farms that are correctly priced are attracting a lot of interest. ‘Despite the weather, we had seven viewings the week after we recently launched Upper Huntlywood, a 690 acre Borders arable and stock farm priced at around £4,000 an acre for the land,’ Denne explained.

A 316 acre stock farm in Dumfries and Galloway has also just attracted offers over its guide price, despite the continued absence of buyers from both sides of the Irish border who were significant purchasers of farms in the west of Scotland before the credit crunch curtailed their spending power.

Michael Ireland, head of rural valuations in Scotland, who has valued a number of wind farms, said that he is often asked if the increase in the number of upland wind farms is having an impact on values. But so far there is no evidence that this is happening.

‘At the moment it is woodland not wind that is driving demand for Scottish hill land. Uncertainty over future renewable energy payments and the time taken to get planning permission means there is very limited speculative demand for land for wind turbines,’ he said.

‘By contrast, there is still a lot of demand for hill land suitable for tree planting, either for commercial forestry or to re-establish native woodland habitats. An added bonus is the ability to sell carbon credits that organisations can use to offset their CO2 emissions,’ he added.

Looking forward, the Knight Frank Scottish Farmland index predicts further growth in values of 3% over the next 12 months. As well as strong demand, a dearth of good farms for sale is likely to support values.
Knight Frank is about to launch a 1,300 acre stock farm in the Tweed Valley, near Melrose, in the Scottish borders that it believes will be a good test of the market.

This story relates to: farm  land  property market  scotland  [SEE ALL]


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here



Europe: Top Headline

UK home owners set to spend £6 billion on property upgrades in next three yearsUK home owners set to spend £6 billion on property upgrades in next three yearsNearly a third of UK home owners are looking to carry out work on their home in the next three years, with up to £6 billion in projected works planned annually over the next three years.



West Tower

West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Real estate franchise Century 21 reports surge of new offices in UK

Property franchise Century 21 UK has announced the opening of a number of new offices around the country.

Finance Update

Nationwide resumes access to Help to Buy for home movers

Nationwide Building Society has announced that it is resuming access for home movers looking to participate in the government’s Help to Buy equity loan scheme from Wednesday, 24 September 2014.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Europe property and real estate news feed (RSS)