Taylor Scott International News
Rural land prices in the UK are expected to fall throughout 2016 due to a global drop in crop prices, according to the latest report from the Royal Institution of Chartered Surveyors (RICS). Some with 34% more rural surveyors expect to see prices drop than rise which could make rural property more attractive to non-farmers. Across all farming sectors, demand for rural land is expected to fall over the next 12 months. While in the last half of 2015, the only areas where demand for land grew were the North East and South East of England. Land yields remained relatively stable over the second half of the year at 1.8%, from 1.7% previously, while arable and pasture land rents fell by 4.5% and 4% respectively over the course of the year. The RICS data shows that 25% of rural land sales are to non-farmers such as people starting up cottage industries. This is up from 18% in the first six months of 2015 and it is a trend that is strongest in the south east of England where sales to non-farmers stood at 32%. The data also shows that property developers accounted for just 1%, a decrease of 2% in the second half of 2015. While saes to individual farmers fell from 62% to 57%. The report explains that this comes at a time when commercial and residential property prices in towns and cities are continuing to rise and this is likely to make rural land increasingly attractive to those outside traditional farming communities. Already, a quarter of all countryside land is being purchased by non-farmers, so called lifestyle buyers or hobby farmers and RICS expects this trend to increase. ‘Start-up businesses do not have to be confined to the trendy streets of East London, Britain’s countryside has a great deal to offer young entrepreneurs. Market conditions appear to be encouraging a wave of new types of rural business, and help must be given to support this trend further if our countryside communities are to thrive,’ said RICS chief economist Simon Rubinsohn. ‘New entrants to farming businesses continue to face barriers, but at RICS we are currently working with the Fresh Start Land Enterprise Centre (FSLEC) who are developing a pilot matching service for potential land entrepreneurs, helping to bring together those looking for new opportunities in agriculture with those who have land and rural real estate to let,’ he pointed out. Taylor Scott International
Taylor Scott International, Taylor Scott
