West Midlands farmland values predicted to rise as environmental interests stoke demand
Farmland values in the West Midlands are expected to rise this year, with land that could lend itself to environmental uses predicted to see the largest gain.
According to the latest farmland price index from Savills, farmland in the West Midlands traded at an average of £7,290 per acre last year.
Looking ahead agents believe lack of supply and sustained high demand will continue to fuel the market. However levels of price growth will vary depending on land type, geography and quality.
Savills researchers are predicting the value of prime arable land will increase by an average of 2.5 per cent a year for the next five years, with poorer quality livestock land that could lend itself to environmental uses expected to increase by an average of six per cent a year over the same period.
The lower quality land perhaps has greater capacity for price growth, so I think the predicted rises have to be seen within that context. But overall I think it paints a positive picture.
Rhydian Scurlock-Jones is rural director at Savills in the West Midlands
