The strong demand for farmland in the East Midlands so far in 2015 and the steady increase in prices looks set to continue despite reports of a slowdown nationwide.
Our rural team here at Andrew Granger & Co say there is no evidence of demand letting up in the region despite a new RICS survey that registered a sharp increase in the supply of farmland at the start of the year and while recent commercial activity for rural land appears to have levelled out.
The RICS forecast a significant reduction in price growth expectations for the next 12 months nationally, but for the East Midlands, with a market heavily saturated with lifestyle purchasers and investors, we believe rural property, especially with a residential element, is more likely to follow the national trend of rising high house prices.
Andrew Granger & Co Rural Surveyor Adam Jaeban says: “In terms of sales we have not seen demand or prices reducing in 2015 with good land in the right areas still making very strong money. The market is being heavily influenced by lifestyle purchasers and investors, and we fully expect anything with a big residential element to follow the upward trajectory of house prices. Supply is still not keeping up with demand here in the East Midlands.”
Despite softening commodity prices we believe there is still appetite for better land. We've also noticed a widening gap between good and mediocre land in both sale prices and rents.
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