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Scottish Farmland attracts buyers from across the UK Demand for Scottish farmland remains strong and continues to be better value per acre than in other parts of the UK according to the latest RICS/RAU Rural Land Market Survey. The average UK price per acre during the final six months of 2015 was £10,064, a record high for 11 months in a row. Although Scottish land prices have grown steadily over recent years, it remains significantly cheaper to purchase farm land here at an average of just £3,625 per acre. This figure does however reflect the fact that a broader range of land types have been offered for sale in Scotland during that period. According to rural experts, despite the uncertainty caused by the Referendum and CAP reform, in 2014 English buyers turned their attention to farmland north of the border where good quality pasture land was at least 64% cheaper than the rest of the UK in the second half of 2015. During 2015 fewer farms were sold to English buyers which could have been down to a number of factors not least of which was the sharp downturn in the value of commodities and the resultant lack of confidence in the industry. Simon Brown of CKD Galbraith explains:
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We have marketed over
“Despite the current lack of confidence 132 farms in excess of which has been exacerbated by the 26,000 acres of agricultural downturn in the value of commodities and land with a value of over short term cash flow problems due to the ongoing problems in paying out the Basic £115million across Scotland Payment Scheme support, demand and in the last 12 months prices for farmland in Scotland have held up well in most areas. We have seen a number of headline sales in some of the prime farming regions of the East Coast such as Angus but in general the trend of farmland values is stable. Farmland in Scotland is still available at a discount to the values in England but potential English purchasers have been met with strong local and regional competition for farms as successful businesses have continued to expand. At the lower end of the land ladder, there has been renewed interest in the purchase of land for planting trees which has been stimulated by better grants being made available for commercial woodland creation. The result has been a marked increase in the value of some types of hill and rough grazing land which is suitable for planting.”
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@CKDGRural
Front cover image Brathinch Farm.
54%
39%
Buyers from Scotland
National Buyers
7% International Buyers
Buyer statistics relate to all property sales in the last 12 months compiled by CKD Galbraith in-house Research.
From our offices across Scotland we manage and provide advice on farm, forestry, land and estate interests totalling some three million acres. Local knowledge, specialist expertise.
• SFP / Basic Payment Conversion
• Farm & Estate Management
• SRDP & IACS Applications
• Dedicated Farm Sales Centre
• Compulsory Purchase & Compensation
• Valuations & Acquisitions
• Landlord & Tenant Issues
For expert advice on all your Farm, Estate and Land needs. If you would like to discuss buying, selling or renting farms in Scotland & Northern England, please contact Simon Brown, Duncan Barrie or Ian Hope in our National Farm Sales Office, Stirling on 01786 434 600. Offices across Scotland | galbraithgroup.com