13 December 1996

No election effect…

AGRICULTURAL land values are unaffected by a general election even when the outcome leads to a change in government.

Instead of reacting, the trend in land values at the time of an election continues after the result, according to recently published research by agent Strutt & Parker.

"A general election has not influenced land values in the past," said the firms Giles Allen. "It is subsequent policies and their effect on the economy which can lead to changes." By the 1992 election – when there was anticipation of a Labour victory – land values were on the decline, averaging £1667/acre, and the trend continued after the Conservative victory, falling to £1502/acre in 1993.

The trend was reversed in 1995 when the average value improved to £1730/acre, fuelled by an improved economy and high cereal prices leading to a growing demand for the limited supply of land available to buy.

&#8226 The land values used for the research are MAFF average prices for all land sales in England and Wales from 1946-1996.