Land Values

[wellingtonfarmer]

I can’t see any strong drivers for land prices to increase.

So we have a Brexit decision,however it will take its relationship with future trading partners a minimum of 5 years to pan out.

Commodity markets are flat,money is cheap but because money is cheap you need inflation for investment to deliver.

Only thing you have is rental return which is as good as a savings account but locking money up in land is still unpredictable.

There are better places to put money with better returns.

Isn't the fact that you can't make any more land a strong driver for prices to increase?

It's a bun fight round here for ground. Rumour that a 270 acre farm for sale In Herefordshire at the moment is 4.5m and bids still being made.

 

[db9go]

Industrial units for letting seem to be popular.

just have to choose carefully as they are rateable if empty.

Have you been involved with any

 

[db9go]

Isn't the fact that you can't make any more land a strong driver for prices to increase?

It's a bun fight round here for ground. Rumour that a 270 acre farm for sale In Herefordshire at the moment is 4.5m and bids still being made.

190 acre with some small buildings no house shared drive with 3 others near by made £19500 acre

 

[Jo28]

190 acre with some small buildings no house shared drive with 3 others near by made £19500 acre

Must be roll over

 

[db9go]

Must be roll over

no

 

[glasshouse]

190 acre with some small buildings no house shared drive with 3 others near by made £19500 acre

So who paid that?

 

[db9go]

So who paid that?

So who paid that?

A near by farmer

 

[henman]

lots of grassland 30 acer blocks no more than 5 grand acer and still not selling farming not paying

 

[midlandslad]

A near by farmer

I expect a lot of it will come down to the banks and what there take is on post Brexit world. From my experience, they will lend to all and sundry, but a lot of these lenders now have three or five year reviews built in. If you have taken a sizeable loan out now, would you want to be reviewing the terms or whether the bank will continue at all with the loan in 3/5 years??

 

[db9go]

I expect a lot of it will come down to the banks and what there take is on post Brexit world. From my experience, they will lend to all and sundry, but a lot of these lenders now have three or five year reviews built in. If you have taken a sizeable loan out now, would you want to be reviewing the terms or whether the bank will continue at all with the loan in 3/5 years??

You could be right this is just the same as the 50s 60s 70s 80s 90s and before Faint hart never f**k a fair lady and those that take a long vue will have there reasons.
I know when i bought my first property it sounded dear but you have work at it

 

[Jackov Altraids]

It's not hard to imagine that many financial advisers will be recommending those approaching retirement to cash part of their pension in and buy land. It should be a safe asset with tax benefits and there is every chance that they can rewild / plant trees on it and get a annual payment with no work whatsoever. They would then have the recreational benefit of the land and the warm feeling of saving the planet.
There are many farmers looking to retire who would never consider this option as it would be somewhat soul-destroying after a lifetime of improving the land. The truth is, they may as well do it as the purchaser is quite likely to.

 

[Farmertom1988]

Regular blocks of 20 acres or so go for £12-14k an acre around here (West Midlands). We even had an 80 acre block of bare arable land go for £16k an acre last year, nothing special really 3-4 tonne an acre wheat ground, that was farming money no roll over.

 

[Farmertom1988]

I can’t see any strong drivers for land prices to increase.

So we have a Brexit decision,however it will take its relationship with future trading partners a minimum of 5 years to pan out.

Commodity markets are flat,money is cheap but because money is cheap you need inflation for investment to deliver.

Only thing you have is rental return which is as good as a savings account but locking money up in land is still unpredictable.

There are better places to put money with better returns.

I can't really see any drivers for a decrease either, if i was to wage a bet, i would bet that interest rates will be still below 1% by 2030....

 

[Yale]

I can't really see any drivers for a decrease either, if i was to wage a bet, i would bet that interest rates will be still below 1% by 2030....

Correct,seems like we are in a situation like the Japanese where you almost have to pay a negative interest rate to keep money safely invested.

There‘s no real reason for land to keep increasing unless we have a serious banking crisis and investors lose confidence in them.

 

[db9go]

I can't really see any drivers for a decrease either, if i was to wage a bet, i would bet that interest rates will be still below 1% by 2030....

I agree about interest rates they have found away of charging more than straight interest increases
People are paying more now than when it was higher.
You used to be able borrow at 1% over bank base rate that is now a thing of the past
That is how Gordon Brown help refinance the banks after 2008 crash

 

[jackrussell101]

County Council farms here in Staffordshire making £18,000 an acre currently, house and buildings included in that price of course.

 

[midlandslad]

County Council farms here in Staffordshire making £18,000 an acre currently, house and buildings included in that price of course.

How many acres are they?

 

[jackrussell101]

How many acres are they?

100 acres roughly.

So I suppose £800k for the house and buildings in their own right effectively.

 

[BELOWAVERAGE]

County Council farms here in Staffordshire making £18,000 an acre currently, house and buildings included in that price of course.

Are you sure about that, tender closing date isn't until next week, I'm on one of them.

 

[jackrussell101]

Are you sure about that, tender closing date isn't until next week, I'm on one of them.

I'm not 100% sure to be fair but it's what I've heard doing the rounds so may not be true