Thursday 8 January, 2009

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Farmhouse
Agricultural land price rise increases letting returns
15/10/2007 10:02:00
FWi

Returns from let property on rural estates have been boosted by substantial increases in agricultural land values, according to a study by property firm Savills.

Returns jumped to 15.7% this year, up from about 10% for the previous two years, the Savills Estate Benchmarking Survey found.



While income from agricultural sources increased for the first time in three years, the study found commercial assets were one of the most significant contributions, accounting for more than 16% of an average estate’s gross income.

Agriculture contributed just 33% of gross income, the lowest level since the survey began in 1996.

Other sources of income, including leisure, woodland and sporting accounted for 6% of gross income, the study found.

Mike Pennington, of Savills estate management, said these other sources of income should be exploited to sustain the upward trend in gross income.

“We believe the future opportunities will lie in increasing leisure and environmental activity on estates,” he added. 

by Caroline Stocks (About this Author)

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