Local land buyers have returned to the market with the overseas contingent fading away in 2010, according to research into UK land purchasing.
While overseas buyers have been a significant force in the land market in eastern regions, research by Brown & Co shows UK buyers have returned accounting for more than 65 per cent of land sold in 2010.
Over the last five years there has been plenty of speculation about land prices over the whole of the UK, particularly here in the East. Brown & Co’s research, compiled from its nine UK offices covering Yorkshire to Essex, shows farm land has on average risen in value from £4,213/acre in 2006 to £7,509/acre in 2010.
Brown & Co land agent, Elizabeth Allen, based in Spalding said: “Having sold and purchased over 50,000 acres in the eastern regions in the last five years, our research reveals that whether its 4 or 1,300 acres, local buyers are still a force to be reckoned with.
“A common misconception is that the region’s farm land is still being purchased by buyers from outside the area. Indeed, in 2006 this was the case with an influx of overseas buyers, with Danish and Irish buyers proving the most successful.”
In 2006 and 2007 overseas buyers bought more than 25 per cent of all land sold by Brown & Co. An additional 30 per cent - 40 per cent was purchased by city money, private funds and investors.
“In uncertain times there is a tendency for businesses, including farming operations, to stick to what they know. This certainly appears to be the case in regard to farm land sales with local buyers snapping up over 65 per cent of the land we sold in 2010.”
Allen added: “Demand for land remains strong with a number of unsatisfied buyers still in the market. As such we expect prices to remain at current levels for the start of 2011.”
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