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Farm values reporting a rise

publication date: Jan 28, 2010
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Rise in farm values reportedSmiths Gore report a rise – at last – in farm values at the end of 2009. Dr Jason Beedell, Head of Research at Smiths Gore says, “The value of equipped farms rose for the first time since summer 2008, increasing by 2 per cent in the final quarter of 2009 to an average across England of £7,200 per acre. However, values are still about 10 per cent lower than a year ago.”

“Some of the increase in values is due to smaller farms being marketed. Our database of sales clearly shows that smaller farms have higher values per acre, as the value of the house and buildings ‘boosts’ the value per acre. Given this, careful lotting of farms is essential to maximise their overall value”, said Giles Wordsworth, Head of Farm Agency. “7,800 acres of equipped farms were marketed in 37 sales, so an average of 210 acres. This is lower activity compared with the year before when 19,100 acres were marketed, in 62 sales at an average of 308 acres per sale.”

“The farmland investment market continues to improve,” comments Gerald FitzGerald, Head of Property Investment and Valuations. “Our recent sale of the Coldred Estate exceeded our expectations. There remains strong demand and a lack of stock. Currently we are on the search for investments both of secure tenanted properties and estates as well as land with long-term development hope. Yields remain low but investors are attracted by tax benefits and potential uplifts in value.”