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Study shows farmland increase

The cost of farmland in Scotland has risen in the first half of this year, with demand continuing to outstrip supply, according to surveyors.

Despite some Scottish sales of bare land reported to be in excess of £10,000, the average price of farmland is now £4,500 an acre.

Across the UK, farmland prices increased 3% since the start of the year to £9,594 an acre, with Wales showing the largest rise in average prices over 12 months.

During the last year, 29% more chartered surveyors in Scotland reported rises rather than falls in demand, the latest RICS/RAU (Royal Agricultural University) rural land market survey revealed.

Looking ahead to the next 12 months, 57% of respondents expect prices to rise rather than fall throughout the country.

Sarah Speirs, director of the Royal Institution of Chartered Surveyors (RICS) Scotland, said: "The latest data shows that growth in demand for farmland continues to outstrip that of supply, and this is pushing up prices and supporting expectations for further increases over the course of the next twelve months.

"Demand remains very strong on the commercial side, particularly from farmers keen to expand production onto neighbouring plots.

"Significantly, however, there has been a revival in residential or 'lifestyle' demand, which only began to start growing at the end of 2013 having been more or less flat since 2008. This coincides with the broader turnaround in the UK housing market."

Contextual targeting label: 
Agriculture

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