Farmland has outperformed central London property for the first time in 16 years. The cost of prime arable land increased by 10.7 per cent to £7,594 per acre last year, according to Savills, and growth of 40 per cent, to £10,631 per acre, has been forecast by 2018 as investors increasingly regard UK farmland as a safe haven.
Townmoor and Station Farms, located near Littleport on the Cambridgeshire borders, were sold for £2.7m this month. A total of 18 potential buyers, which included local farmers, overseas buyers and investment funds, were prepared to pay £12,000 per acre.
Christopher Miles, of Savills, said recently that Farmland is seen as a tangible asset. He said that people invest in arable land for the same reasons they invest in housing. It’s something that won’t disappear.
The popularity of UK farmland is boosted by liberal land ownership laws, and demand is high as owners hold on to their assets. A resurgence in the agricultural sector is another factor making land an excellent investment at a time when commodity prices are volatile.
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