Land prices at an all time high in Gloucestershire, England, as demand outstrips supply

Two farms near Cirencester have reached the heady price and the average price of farmland sold in Gloucestershire by real estate consultants Knight Frank in the past 12 months was almost £9,000 and acre.
 
This compares with the average price of farmland in England of £5,769 and acre, according to the Knight Frank Farmland Index and £5145 and acre according to the latest figures from the Royal Institution of Chartered Surveyors.
 
Knight Frank says demand for farmland in Gloucestershire is outstripping supply. The English farmland market has shown remarkable resilience compared to other asset classes during the recession with average values increasing by 20% over the past 12 months, according to the Knight Frank Farmland Index. The index is now at an all time high.
 
In 2006/07 land values stood at £3,500 to £4,000 an acre in Gloucestershire and the Cotswolds. Now, at £8,842/acre on average, values have more than doubled in just a few years, according to Atty Beor-Roberts, head of Knight Frank’s Cirencester office.
 
‘Land in the Cotswolds and Gloucestershire is a rare and sought after commodity. Supply is limited and demand remains strong. When land comes onto the market in the area, it presents a once in a lifetime opportunity to buy,’ Beor-Roberts explained.
 
‘Gloucestershire offers some stunning countryside and a train journey into London Paddington of just one hour. Commuters can travel from door to desk in under two hours. People also like to own tangible assets such as farmland in these tough economic times,’ he added.
 
Clive Hopkins, head of farms and estates sales at Knight Frank said that farmland being exempt from inheritance tax has been a boost to sales in the Cotswolds and Gloucestershire areas.
 
‘Landowners in the area now have the opportunity to benefit from prices being 34% higher than the national average, and with many of the purchasers being private individuals, landowners can sell discreetly, with limited publicity, on timescales that suit them,’ he explained.
   
‘Now is a good time to sell land because the future for interest rates remains uncertain. Low interest rates offer a false level of security for people who have geared up against their land. When interest rates rise, that gearing will really begin to hurt,’ he added.