Interest in UK Farmland Property Increases

Over the past three years, investors with agricultural property in their portfolio have found that their assets have topped the investment performance league in the UK....

Over the past three years, investors with agricultural property in their portfolio have found that their assets have topped the investment performance league in the UK.

Since the start of the economic downturn, property consultant Savills has championed the benefits of farmland and forestry real estate, with it acting as a good hedge against inflation. Added to this, its weak correlation with mainstream assets means it performs well when other assets are showing poor returns, the body explains.

Indeed, as a result of this strong performance, last year the proportion of investment motivated purchasers more than doubled to 31 per cent.

Also, the number of new applicant registrations increased by more than 45 per cent, offering further evidence that interest in farmland as a strong performing asset is increasing.

"In the past 15 years let and in-hand land has outperformed all assets except residential property, but during the past three years farming and forestry have topped the investment performance league in the UK," Ian Bailey head of Savills rural research, said.

- Thursday 24 February 2011

*This page is provided for information purposes only and should not be construed as offering advice. Flex Profit Hub is not licensed to give financial advice and all information provided by Flex Profit Hub regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.