What is rural land worth?

HISTORIC AVERAGE LAND VALUE IN ENGLAND – ALL TYPES

The below graph looks at historical average farmland values in England and the major historical factors that have shaped the market to date. Savills Farmland Values Survey formally originated in 1992 and records average values by land type across England, Scotland and Wales.

Over the past 100 years, average England farmland values have returned 5.7 per cent per annum. In real terms, this equates to just under 2 per cent compound annual growth rate over the same period.

KEY EVENTS THAT HAVE SHAPED FARMLAND VALUES

To give some context, below is a timeline of significant moments in history that have shaped farmland values from as early as 1900 through to present day.

THE GB FARMLAND MARKET

The GB farmland market has a long history and undergone some significant structural changes over the past 100 years. At the turn of the 20th century, the bulk of farmland was held by a comparatively small number of owners with over 90 per cent of land let. Over the period of our research, this has fallen to around a 30 per cent share today. 

Following the Second World War, government market intervention and protectionism initiatives improved earning potentials from agriculture and limited downside price risk. This, in turn, spurred interest in farmland from domestic and foreign investors, who entered the market for stable, long-term growth, hedging and wealth preservation benefits. Farmland is held for a long time, with average turnover rates estimated at once in every 200 years.

Today, farmers, investors and lifestyle buyers compete for farms and estate properties with a mix of motives, from farming to residential and sporting. The most recent trend is the rise of the environmental buyer. With ambitious targets set by government and companies to reduce their environmental impact, from biodiversity loss to carbon emissions, farmland is being targeted as a solution to these issues.

The Savills Farmland Market Spotlight reports provide a more detailed overview of activity and forecast a market direction over the short to medium term.

SUPPLY BY COUNTRY SINCE 1995

Below shows the trend of publicly marketed acres across Great Britain.

LAND VALUES BY LAND TYPE SINCE 1992

Average farmland values split by major land type as recorded by the Savills Farmland Values Survey.

LAND VALUES BY REGION SINCE 1992

Regional trends of average farmland values as recorded by the Savills Farmland Values Survey.

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