Rural prices rise significantly

Posted: 28 Sep 2007 10:55:43 GMT

Homeowners in rural parts of the UK have been given a boost with new figures showing that farmland increased in value by 22.6 per cent in the first half of 2007.

Homeowners in rural parts of the UK have been given a boost with new figures showing that farmland increased in value by 22.6 per cent in the first half of 2007.

New figures from the Royal Institution of Chartered Surveyors (Rics), published in the Rics Rural Land Market Survey for Great Britain, show that this type of land is proving popular among city workers.

According to the survey, prices rose to £8,850 per hectare in the first six months of the year compared to £8,164 per hectare in the final half of 2006.

It is good news for anyone who owns a rural home with land and Rics said that the price boom is down to increased demand and an influx of wealthy Londoners.

"Although the availability of land increased fractionally in the last half year, supply remains constrained and insufficient to satisfy the appetites of buyers," commented Sue Steer, Rics spokesperson.

"The market is being fuelled by city buyers trying to make the most of low farmland prices, and large bonuses are entrenching these 'move to the country' trends.

"Farmers from Denmark and Ireland are also becoming more visible as they buy up competitively priced land in the UK," she continued.

Nationwide reported this week that UK property prices increased by 0.7 per cent between August and September.

© Houseladder Ltd




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