A 58-acre lot of silt land near Boston made £18,055/acre at auction last week, which is believed to be a record.
Pygott & Crone’s Richard Start put 167.7 acres of land and a farm building in Old Leake under the hammer on 26 October on behalf of eight beneficiaries. It went to six different local buyers for a total of £2,088,000.
Of the 10 lots, 95 acres at Leake Hurn’s End were bought by a local farmer for £1.52m in three lots, one of which included a farm building and one of which was the 58 acres at £18,055/acre.
“We believe this is the UK record for a price achieved per acre. Pygott & Crone already holds the record for tenanted land at over £11,000 per acre. We have now broken the record for vacant possession which we believe stands at around £14,000/acre, for land also in the Boston area,” said Mr Start.
There was a large number of progressive farmer buyers in the area, said Mr Start, with 24 buyers having registered prior to the sale. The increase in land values in recent years meant that there was a higher level of security in existing businesses against which banks could lend, he said.
“I think the high price achieved was in part due to excellent quality land in a highly respected location which is still in demand. This coupled with growers wishing to expand and invest in a low risk capital asset to guard against inflation and also to capitalise on the Inheritance Tax advantages.”