Farmland values remain firm post Brexit referendum
The average value of bare agricultural land in England fell by just 1.3% in the third quarter of 2016 to £7,672/acre, according to the latest results of the Knight Frank Farmland Index.
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Brexit has failed to spook the market and the farms and estates launched since the referendum have attracted strong interest from both buyers in the UK and abroad.
The slide in the value of sterling has made UK farmland look like a buying opportunity for most foreign-currency denominated buyers – on an annual basis prices are now down over 20% in dollar terms.
A weaker pound means UK agricultural commodities are now also more competitive on world markets providing a much-needed fillip for farm-gate prices.
However, the local and regional variation in land values continues to grow, says Tom Barrow, Head of Knight Frank’s Country Valuations team.
"Accurately valuing farmland in the current climate is very difficult as even fields on opposite sides of the same road can fetch very different prices depending on who is interested in buying them."
_Tom Barrow
