Farms & Estates Commentary - Autumn 2014
Simon Brown on agricultural land prices and the continuing demand for good quality farmland across Scotland.
Simon Brown, partner and head of rural and residential sales at CKD Galbraith says that agricultural land prices have seen an unprecedented rise over recent years.
Good quality farm land is always in demand across Scotland but farmland prices may be near their peak for the moment, especially in regions such as Angus where bids of up to £14,000 per acre have been achieved for some of the best arable land.
However, when considering future farmland prices factors such as; tax incentives on land ownership, demand from windfall investors with development land roll over money and the anticipated SRDP announcement on increased grants for commercial aforestation should all be taken into consideration.
Whilst the farmland market has experienced rising prices with strong local and national demand, the market for sporting estates became subdued during the lead up to the Scottish referendum and following the publication of the Land Reform proposals. Although the referendum is now behind us, until it is clear which of the Land Reform proposals the government will adopt, the estates market will undoubtedly remain subdued. Demand for prime property will increase as the UK’s economic recovery gathers pace and the Scottish Estate will remain a sought after asset.