Following further increases during the third quarter of 2013, the value for prime arable land now averages just under £8,300 per acre across Great Britain, the firm’s analysis shows.
This pushes average growth up to 8.5% so far this year, close to Savills’s baseline forecast for average value growth for 2013 of 8.8% with a further quarter to go.
This equates to an 8.5% value increase in average prime arable land since the beginning of the year and a year on year growth of 14.5%.
But the firm also points out that there are significant regional variations and the farm land market remains increasingly diverse in terms of value being closely linked to location, land quality and type as well as the residential weighting of the farm.
In the third quarter the strongest average prime arable growth was in the Eastern Counties of England with a rise of 4.6%, followed by Scotland at 3.3%, the North of England at 3.1%, the South East at 1.9%, and the East Midlands at 1.3%.
The West Midlands, the South West and Wales saw no change in the price of prime arable land during the last three months with a lack of evidence due to very little activity.
However, both the West Midlands and the South West have already witnessed 4.6% and 2% growth respectively in prime arable land since the start of the year, albeit not as steep a rise as the East of the country at 12.1%.
‘The stellar performance of the best commercial farms continues. However, although the headline figures show impressive growth, there is wider a story behind the sound bites, which is a less buoyant market for residential farms,’ said Alex Lawson, director of Savills Farms and Estates.
‘Similarly the limited supply of land advertised, ignores a booming private market, especially in the case of the largest and most expensive farms and estates,’ he added.
Lawson pointed out that in terms of supply there has been a slight uptick in the number of acres publicly marketed so far this year. Some 128,309 acres of farm land were publicly marketed across Great Britain during the first three quarters of 2013, a rise of 5% compared with the same period in 2012.
However, supply across the country continues to be historically low and the research shows that this year the volume of publicly marketed farm land is lower than the average relative supply for the last three, five and 10 years.
With the exception of the East and the South West of England, supply in all regions increased during the first three quarters of the year. Activity started late in Scotland but has picked up and according to the research the total volume of farm land publicly marketed so far this year is the greatest on record...
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