Agricultural Rent Survey

Agricultural Rent Survey
 
Rents For Existing Tenancies

3 June 2016, words by Andrew Teanby

Average FBT rents rose by 22% compared with 16% for AHA tenancies

 

Savills settled rent reviews on over 112,000 acres in the year to 31 October 2015. Average FBT rents rose by 22% compared with 16% for AHA tenancies. For both FBTs and AHAs, livestock farm rents continued to increase particularly strongly in percentage terms. For arable farm rents, the rate of increase for FBT rents was 20% compared to 15% for AHA lettings. Dairy farm rents increased by less than livestock farm rents, reflecting the fact milk prices (in real terms) have declined to levels last seen in 2007 due to global oversupply and the Russian ban on dairy imports from the European Union.

However the data behind the averages can vary widely, depending on individual circumstances, as illustrated in Figure 3. Figure 3 presents the frequency with which AHA and FBT rents increased by each percentage (rounded to the nearest 5%). Although the average increase for AHAs was 16%, the rent on the majority of holdings increased by less than this. FBT rent review results show a much greater variability in rent review results.

FIGURE 2

Rent review results by tenancy type in year to October 2015

 
Figure 2

Source: Savills Research

FIGURE 3

Distribution of AHA & FBT rent review results in year to October 2015

 
Figure 3

Source: Savills Research

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Key Contacts

Andrew Teanby

Andrew Teanby

Associate
Rural Research

+44 (0) 1522 507 312

 

Ian Bailey

Ian Bailey

Director
Rural Research

Savills Margaret Street

+44 (0) 207 299 3099

 

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