Low supply, yet plenty of opportunity
Record low farmland supply headlines the summary of a rather subdued farmland market for 2019. Continued political and economic uncertainty once again weighed on the market as Brexit deadlines and elections made for better viewing than participation. Farmland values remain steady and our analysis of those active in the market suggest new motivators are influencing demand for farm and amenity real estate.
The 2020 farmland forecast was made easier in light of a decisive election result late last year. The election is, however, a small part of the bigger story that is still playing out and we expect landowners to be watching whether announcements of key policy reform are likely to impact on business profitability. The forecast sets out that we are expecting the farmland market to be supported by competing land uses and gradual changes to Government policy rewarding the potential for environmental gains. We also stand back to look at UK farmland investment through a global lens and highlight the political and financial strength backing the freedom of UK land ownership. Many countries around the world do not receive such benefits and while higher returns can be achieved elsewhere, the sustainability of long term, uncorrelated returns remains a key point of difference.
Read the articles within Spotlight: The Farmland Market below.
.jpg)