Farmland prices 'rising at highest rate for 30 years'

The average farmland price rose by some 33.2 per cent over the last 12 months, new research from Knight Frank has found – the highest growth rate seen since 1977.

Continued interest from a variety of sources has pushed prices higher over this period, the property consultancy has reported, with demand from lifestyle buyers rising by 25 per cent in terms of volume over this period.

Foreign investment also remains buoyant, the study added, helping push prices up by ten per cent in the three months to September 2007 alone.

"The market has remained strong despite the increasing cost of debt, global financial uncertainty and outbreaks of Foot and Mouth disease and Blue Tongue," confirmed Knight Frank head of farms and estates Clive Hopkins.

Whilst demand (applicants) rose by almost 12 per cent on a year on year basis to September 2007, supply only rose by three per cent," Mr Hopkins noted.

Earlier this week Savills reported that farmland prices in Scotland also remained strong, with the amount of land coming on to the market also stabilising year-on-year.

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