Agricultural property ‘is flavour of the month’ among investors

Posted 02/02/2011

Demand and solid returns are helping to make agricultural property attractive to investors, according to one expert.

Mark McAndrew, spokesman for property consultancy Strutt & Parker, said that farmland is currently seeing return yields of around 17 per cent, which is encouraging people to see it as a safe investment amid the ongoing economic downturn.

“There is interest from a wide range of people … UK farmland, which has a relatively benign and stable climate compared to some parts of the world, is becoming the flavour of the month,” he commented.

This comes after estate agent Knight Frank recently reported that prices for farmland in the UK were 13 per cent higher at the end of 2010 than they were at the start of the year.

In comparison, prices for residential property in London rose by ten per cent, while prime country houses could only manage growth of 3.3 per cent.