A REPORT by Knight Frank reveals that UK farmland values are hitting record highs.
The study says farmland values rose by 3% in the first three months of the year, and are now 11% higher than 12 months ago. This means the average price of agricultural land in England is now almost £6,000 an acre, taking it to a record high.
Farmland has performed far more strongly than many other asset classes over the past 10 years, the report adds.
Tom Raynham, of Knight Frank’s farm sales team, said: “This resilience is part of what makes farmland so attractive as an investment, and should help ensure values continue to rise steadily during 2011.
“When you look at the performance of other investments, such as the FTSE 100, the farmland market has been far less volatile and survived the credit crunch in much better shape.
“That hasn’t been lost on private investors, and we have noticed a lot more interest in good quality arable land.”
