Land price rise of 5% predicted for 2013

After a slight lull this summer, Knight Frank is predicting a land price rise of about 5% over the next 12 months.

“While it has undoubtedly been a difficult year for the UK’s famers, the situation has been the same all over the world,” said Clive Hopkins, head of the firm’s farms and estates department.

“This should help to keep commodity prices high and give producers and other potential purchasers more confidence going forward. I think the land market will experience a bit of a purple patch next spring.”

The firm’s farmland index records English farmland prices rising by nearly 200% in 10 years, compared with 57% for the FTSE 100 equities index shares and 48% for average UK house prices.