Rural English Estates Performing Well For Investors

Investors who plough their money into rural English estates are continuing to see a good return on their investment...

Investors who plough their money into rural English estates are continuing to see a good return on their investment, according to the results of the Savills 2013 Estate Benchmarking Survey. 

The average gross income on all estates increased by 5.3 per cent to £212 per acre, figures show. This upward trend has been in action since 2001. 

According to the survey, which accounts for figures up to April 5th 2013, the average total return for on let property stood at nine per cent. However, Savills highlighted that this was primarily capital growth at 7.7 per cent, with an income return of just 1.3 per cent. 

The survey also showed that the agricultural and residential sectors performed best over the survey year - good news for those who have invested in these areas. Indeed, the agricultural sector saw an increase in total income of 2.3 per cent, while the residential sector enjoyed a rise of 4.6 per cent. 

There was further good news in the commercial sector, which saw a significant bounce back from tough times, with total income increasing 21 per cent. The take up of commercial workspace on rural estates has seen an improvement, which is likely to have been a contributing factor. What’s more, it is thought further increases in this sector could be seen as the planning regulations introduced in May are hoped to stimulate this further. 

However, due to a troubled economy and bad weather, the leisure sector saw a further decrease of 7.3 per cent in its incomes. This follows a drop of 7.1 per cent in the sector during the 2012 survey year. 

Meanwhile, income from residential property rose by 4.6 per cent to an average of £8,723 per property, with this believed to be due to a mixture of rental increases and a continued increase in the proportion of ASTs. 

- Thursday 26 September 2013

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