The average price per acre for farmland in Wales is £6,594, and predicted to rise over the next 12 months. According to figures released by RICS in its rural land market survey, the average price per acre has nearly doubled since 2006. This figure was calculated based on mean surveyor estimates of bare land and did not include any residential properties.
The supply of quality farmland has tightened this year, while demand remains high. As a result, prices are on the rise. According to a spokesperson for RICS, any farms which have come onto the market are generating a lot of interest from commercial farmers, as well as investors who see this niche as a relatively safe choice.
Some farmers are looking to relocate and distance is not a barrier if they find the right property. Farmers from the south-west part of England have expressed interest in moving to South Wales. The current market is good news for property owners interested in selling at this time, as demand for the best land is strong and is expected to continue to stay that way.
There is a shortage of farms and land in North Wales, too. This lack of product is contributing to rising prices and localised competition for properties coming onto the market.
The low supply of farms for sale has contributed to transaction levels reaching their lowest numbers since the beginning of 2006. During the first six months of the year, only 115 transactions took place. In the same period in 2011, 298 transactions were completed.
Prices are expected to rise in 2013, with surveyors predicting figures will reach the highest levels since the beginning of 2010. Land prices are on the rise in most areas of the United Kingdom. The West Midlands reported the highest levels in the first half of the year, while Scotland had the lowest.
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