UK Farmland Prices Increase by 7% in a Year

According to the latest report by UK estate agency Knight Frank, farmland values in the country increased by 3% in Q2 2011. They are now almost 7% higher than at the same time last year and reach over £6,000 per acre. However, Knight Frank agents highlight that price growth is starting to slow, while regional differences become more and more visible. Mr. Shirley of Knight Frank rural property research department, claims that "a shortage of good farms for sale and strong demand from farmers, investors and lifestyle buyers have helped push up prices. There are, however, signs that the market is starting to flatten and we expect further growth to remain relatively steady for the rest of the year." His opinion is shared by Tom Raynham, head of farm sales at Knight Frank. Mr. Raynham also says that although demand is still outstripping the supply, the market is starting to flatten. The tendency will continue in the coming months, but the long-term outlook for farmland prices in Great Britain remains positive as the availability of high-quality land is no expected to increase any time soon.