Tag Archives: knight
Investors Continue To Boost Land Prices
Robyn Vinter Monday 07 October 2013 Investor demand is continuing to help drive up the price of farmland, according to Knight Frank. The average value of English farmland rose by 4% in the third quarter of the year to £6,678/acre – a new record high – according to the latest results of the firm’s farmland index. “We are seeing a steady increase in the number of enquiries from individuals and funds, both in the UK and overseas, looking to diversify their investment portfolios,” said Tom Raynham, head of Knight Frank’s agricultural investments team. “Large blocks of good arable farmland, preferably over 1,000 acres, are most in demand,” he said. Capital growth is a key driver, according to Mr Raynham, with prices having risen by 222% in the past decade and predicted to rise by at least 5% annually over the next three years. Investors, however, were also looking more closely at annual yields, he added. “People start to get very interested if there is also the potential for additional income from the likes of renewable energy or a diversified farm business.” A resurgence in agricultural research is also adding to the sector’s investment potential, he said. Continue reading
Riverside apartments in London, with Knight Frank
A rundown of the London Riverside property market with Knight Frank experts Giles Barrett and Matthew Smith. Riverside apartments in London are a fast moving… Continue reading
Investor Demand Driving Farmland Prices, says Knight Frank
By +Peter Mindenhall Friday 19 April 2013 Farmland continues to be seen as a preferred property investment option for many buyers, according to a new report. Research conducted by Knight Frank indicates that average farmland values in England rose by 1.5 per cent in the first quarter of 2013 to GBP 6,307 per acre. Increased demand for land has seen prices increase by four per cent in the last 12 months and 207 per cent over the last ten years. Knight Frank noted that farmland continues to outperform many other asset classes over the mid to long-term, predicting a further increase of between four and five per cent in the next 12 months. The firm said that although investors – fed up of poor returns – seem to be moving away from low-yielding ‘safe-haven’ investments, such as AAA-rated government bonds, there continues to be strong interest in farmland. Some of this demand can be attributed to famers paying a premium to secure land adjoining, or close to, their existing units. Tom Raynham, from Knight Frank’s Farms & Estates team, claimed that farmland still has “a valuable role” to play in investment portfolios. “Even though stocks and shares are back in favour, the markets remain volatile,” he stated. “Land offers something more tangible, yet still has the potential to provide good capital appreciation.” Mr Raynham said that for private investors, it also offers significant tax and amenity advantages. “This combination of benefits has seen increased activity in Lincolnshire, the UK’s arable heartland, with some large blocks of good arable land recently making over GBP 10,000 per acre,” he noted. James Prewett, head of regional farm sales at Knight Frank, claimed there is still a shortage of supply and, while more marginal land may have a lost a little of its value, demand remains strong for commercial units. Continue reading
