UK farmland continues to offer investors some of the best prospects on the market.
Knight Frank has reported that the asset class was the best-performing in the first three months of the year, with values reaching record highs.
Over the course of the first quarter of 2011, farmland values climbed by three per cent and are now 11 per cent higher than they were at the same stage of 2010. The average price of agricultural land in England now stands at just below GBP 6,000, the consultancy said.
"When you look at the performance of other investments
, such as the FTSE 100, the farmland market has been far less volatile and survived the credit crunch in better shape. That hasn't been lost on private investors and we have noticed a lot more interest in good quality arable land and farms, especially now that commodity prices have started to increase," Tom Raynham, of Knight Frank’s farm sales team, said.
Mr Raynham continued noting that demand continues to outstrip supply, with a relatively small number of sellers all keen to take advantage of the current market conditions.
Over the last ten years, farmland has comfortably outperformed other assets including prime central London property, prime country houses and the FTSE 100. Knight Frank says that Farmland has increased in value by 207 per cent over the last decade.
- Thursday 21 April 2011