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UK rural property returns soar to 25.7%

 


UK rural property returns soared to 25.7% in 2007, up from 17.6% the year before, according to figures from IPD.


 


Returns on the IPD Rural Property Investment Index outstripped commercial and residential property, which earned investors -3.4% and 17% respectively.


 


IPD said the total return can largely be attributed to the rise in capital values.


 


Capital growth was 23.2% for held property.


 


However, it said 2007 was the lowest income-producing year since the index began in 1981, yielding just 2.1%.


 


The East Midlands achieved the highest returns at 34.9%, well above the UK average, whilst the North West and North East returned a lesser 16.6%.


 


IPD co-founder Ian Cullen said: “Specialist investments in rural land and forestry have demonstrated their diversification strength in 2007 — for that small group who have stayed loyal to these sectors.”


 


nathan.cross@rbi.co.uk


 

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