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Lack of farmland pushes up prices

Monday 3rd November 2014

There is a lack of farmland available to buy, according to Smiths Gore, with 10% less farmland marketed so far this year compared to 2013. 
The 97,700 acres marketed so far in 2014 is also the second lowest amount recorded ever by Smiths Gore. Second only to the 79,200 acres marketed in 2012. 
Regionally, research shows that the South West and East of England are the most active areas with 19,300 acres (125 sales) and 18,000 acres (94 sales) marketed respectively so far this year. 
The least activity has been recorded in the North East and the North West. Only 22 sales and 4,500 acres have been marketed in the North East in 2014, with the North West performing only marginally better (40 sales and 5,800 acres marketed). 
Dr. Jason Beedell, head of research at Smiths Gore explained the impact of supply on national prices. “The average value of English farmland has risen by 2% to £10,100 per acre in 2014, with no change in values in since June,” he said.   
“Values have risen by 5% in the past 12 months and by 20% in the past three years, so the rate of price increases has slowed,” he added.
Giles Wordsworth, National Head of Farms and Estates Agency at Smiths Gore commented: “While demand for farms with houses and buildings has increased in the last year as non-farmer buyers return to the market for these types of farms after the recession, the strongest demand is from farmers buying bare land for purely farming purposes.”
Smiths Gore also found that bare land values now average £7,400 per acre, and have risen by 27% in the last three years.  
Farms with houses and buildings (known as equipped land) now average £11,000 per acre, a 20% increase in the last three years. 

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