LAND VALUES could increase by up to 50% in some parts of the country over the next few years, according to Crispin Holborow, head of farm sales at land agent FPDSavills.
He said the largest increases would be in parts of the country where residential markets were particularly strong, especially southern England, but also areas where very little land is traded like Yorkshire and counties in the West Midlands.
Prices would continue to be forced up by the lack of supply and strong demand, especially from non-farming buyers, who accounted for almost half of the land handled by the firm last year, said Mr Holborow.
Decoupling support payments as part of CAP reform meant farmers were also more likely to retain their land because they would have a guaranteed income even if they stopped actively farming themselves, he said.
“I can see the land price in the Home Counties going to £4000/acre before sellers are really persuaded that now is the time to sell.
“I suspect that once it hits this level supply will increase significantly.”