The average price of farmland sold in Gloucestershire by Knight Frank in the past year was almost £9,000 per acre whilst two farms within 12 miles of Cirencester have sold for £10,000 per acre excluding farm buildings.
This shows that land in this area is being sold at a premium – the average price of farmland currently sits at £5,769 per acre, according to the Knight Frank Farmland Index and £5145 per acre according to the latest figures from the Royal Institution of Chartered Surveyors.
One of the reasons for this premium is supply and demand, says the agent. Atty Beor-Roberts, head of Knight Frank’s Cirencester office commented: ‘Land in the Cotswolds and Gloucestershire is a rare and sought after commodity. Supply is limited and demand remains strong. When land comes onto the market in the area, it presents a once in a lifetime opportunity to buy.’
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Clive Hopkins, head of farms and estates sales at Knight Frank added: ‘The benefit of farmland being exempt from inheritance tax has been a boost to sales in the Cotswolds and Gloucestershire areas. Landowners in the area now have the opportunity to benefit from prices being 34% higher than the national average, and with many of the purchasers being private individuals, landowners can sell discreetly, with limited publicity, on timescales that suit them.
‘Now is a good time to sell land because the future for interest rates remains uncertain. Low interest rates offer a false level of security for people who have geared up against their land. When interest rates rise, that gearing will really begin to hurt.’