FARMLAND prices in the north have almost tripled in the last decade, according to research from property adviser Savills.
Average prices in the region for an acre of grade 3 arable land now average £5,230 per acre, whereas grade 1 arable land can reach £8,000 or more per acre in some places. Ten years ago prices for grade 3 arable land averaged at just £1,800 per acre.
Andrew Black, from Savills York, said: “Following a slow start there has been a buzz in the market in the last two months, which has led to a strong market with some sales agreed over £8,000 per acre.
“Slightly increased supply has helped to stimulate activity and there are now a number of potential vendors in the pipeline if they can find a suitable farm to buy. Optimism will be important if these values are to hold in second half of the year so fingers crossed for a good quality harvest.”
Ian Bailey, head of Savills rural research, said: “We expect farmland growth rates to slow during the second half of this year, as the market become increasingly polarised, with a strengthening correlation between values and land type, quality and location.”
Overall, farmland values across England continue their upward trend, rising by 3.3 per cent between April and June 2011. That followed a 2.7 per cent rise in the first three months of this year.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here