Short supply and high residential values are hiding the full extent of a decline in agricultural land values, according to a recent study by Strutt & Parker.
The July 2001 Farmland Update shows that land values between March and June 2001 fell by 7% to an average of £5,930 per ha (£2,400 per acre). However, the residential proportion of the land value has risen from 32% to 45%, hiding the true decline of the bare-land value.
The research concludes that land values will continue to fall, and that the residential proportion will rise to 50%. Availability of land has also dropped due to foot-and-mouth quarantines causing a bottle-neck, which has also artificially raised the value of land.
East Anglia has the highest land values, averaging just over £6,177 per ha (£2,500 per acre), although the South East is catching up due to its disproportionately high residential element.
EGi News 11/07/01
