What will happen to agricultural land values in the next five to ten years?

Historic events have often had an impact on UK land values. In the late 1940s, demand for land in post-war Britain saw values spike to £3,000 per acre. When the UK joined the EU, land values saw another spike before settling around £7,750 per acre in the mid 1970’s. In more recent times, 2008’s financial crash resulted in average land prices spiking at £10,000 per acre (source ONS, Bank of England and Savills Rural Research).

We now find ourselves with an economy reeling from the Covid pandemic, inflation above 10%, a cost-of-living crisis and war between Russia and Ukraine.  On top of all this, more land is being set aside for urban development and energy production. We are an island nation and land is a finite resource. History shows that in times of uncertainty people invest in land as a safe haven, but we are also seeing more land than ever being pulled away from agriculture. It appears that the UK farmland market can expect demand for land to rise, with less and less being available to purchase. This imbalance points towards land values rising over the next 5-10 year period.       

We are currently seeing land and farms selling for 10%-15% more than we were a few years back; part of that is linked to the increase in residential values, but we are also seeing strong competition from farming businesses looking to purchase land and expand their holding.

Our chartered surveyors have extensive experience in the management of land - from huge country estates to small mixed farms. Contact us to see how we can help you maximise the value of your land.