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By Daily Mail Reporter PUBLISHED: 23:54, 29 October 2013 | UPDATED: 00:06, 30 October 2013 Read more: http://www.dailymail…l#ixzz2jgAZE1P9 The price of farmland is rising faster than property for the first time in nearly two decades. Experts say the cost of prime arable land rose by 10.7 per cent last year, compared to an average 3.4 per cent for house prices across the UK. Estate agents Savills said it rose to £7,594 an acre last year and could rise by 40 per cent to £11,000 by 2018. Countryside bliss: The price of farmland is rising faster than property for the first time in nearly two decade It is the first time in 16 years that farmland prices in Britain have risen quicker than even prime Central London property. Christopher Miles, director at Savills, said: ‘Farmland is seen as a tangible asset. ‘People invest in arable land for the same reason they invest in housing, it’s not a piece of paper or a derivative and people have confidence in it because it won’t disappear.’ Arable outperformed prime central London property during the 1973 oil crisis, the winter of 1980 – when interest rates hit 15pc – and the 1990 Gulf War. Easy street: Farmland prices are rising quicker than prime Central London property in areas such as Mayfair, pictured, and Knightsbridge In addition, low numbers of transactions are propping up the price per acre as farmers hold on to arable land as a long-term investment. Overseas buyers consider Britain to have some of the most liberal land ownership laws in the world, while landowners also enjoy business property relief and can pass down holdings to the next generation without incurring inheritance tax. But a resurgence in the UK agricultural industry to meet the demands of a growing global population is also increasing the appeal of farming as a business or an investment. Mr Miles said: ‘As commodity prices remain volatile, land remains an excellent store of wealth.’ Read more: http://www.dailymail…l#ixzz2jgAW1Lf1 Follow us: @MailOnline on Twitter | DailyMail on Facebook Taylor Scott International
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