X
X
Where did you hear about us?
The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

Demand for land falls sharply in the face of uncertainty, says new survey

Demand for rural land has fallen sharply in the past six months and prices are expected to fall, according to the RICS/RAU Rural Land Market Survey H1 2016. 

A significant drop in demand for rural land was reported in H1 2016, and with supply continuing to increase, expectations have been pushed further into negative territory with 49% of contributors now expecting prices to fall across all farm types over the coming year. 

Anecdotal evidence from respondents suggests that several factors are combining to dampen sentiment in the market which includes increased uncertainty due to the EU Referendum, subsequent confusion over the future of CAP payments, and low commodity prices.

Commercial farmland has seen the worst of the current downturn with demand falling most substantially in this sector (net balance of -48%), but residential farmland also saw a sharp drop in buyer interest in H1 with 19% more contributors reporting a fall rather than a rise.

This is unlikely to change in the next 12 months with expectations for commercial farmland over the coming year firmly in negative territory (56% of respondents expect a further decline in prices).  However, the outlook for mixed residential land has also turned visibly negative in H1 with a net balance of 42% of surveyors expecting prices to fall rather than rise over the next year.

If you want to read more news subscribe

subscribe