26 April 2023
Growth is slower than that seen at start of 2022 however.
FARMLAND values have increased for an eighth straight quarter, with arable increasing more than pasture, new data from national property consultancy Carter Jonas shows.
Two years of consecutive growth was confirmed as arable land grew by 0.4% to reach £9,272/acre from January to March.
Year on year, arable land has increased in value by 4.3% and pasture by 3.4% but, when compared to the rates of growth seen at the start of 2022, growth has slowed considerably.
“Rising land values has been a key feature of the past two years,” says Carter Jonas Head of Farm Agency, Andrew Chandler. “We have seen pasture grow by a healthy 5.5%.”
Over the same period, lower-quality land has risen at a faster pace than average values, driven by demand from natural capital investors who seek to purchase land for environmental and biodiversity enhancement.
“Although the UK has avoided a technical recession, the sustained economic downturn continues to challenge the market,” Andrew said. “Most notably, with the Bank of England’s decision to raise interest rates for the eleventh time in 18 months, finance is becoming increasingly expensive, and investors are less inclined to borrow.”