Land prices in 2013 steady despite short supply

Land prices are expected by Savills to grow slowly if at all in 2013, although the price gap between the best and poorest land will continue to widen.

While a limited acreage may be forced on to the market by the appalling weather conditions of this year, the overall acreage marketed in 2013 was likely to be similar to that in 2012, said the firm.

“There may be some debt pressures following the extreme weather of this year and the knock-on effect in the livestock sector,” said director of farms and estates Alex Lawson.

“In contrast we expect continued healthy commodity prices to limit the number of good quality commercial farms.” Savills has about £7bn of investment funds looking mainly for commercial arable farms and land.

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