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Farmland Values to Remain Stable Despite Brexit according to Expert
FEARS that land values could plummet following Brexit are unfounded according to one of the country’s leading experts.
Markets remain in a state of limbo as the country moves ever closer to leaving the EU, which raises questions for those looking to buy and sell land.
With Britain’s financial system heavily intertwined with both the EU and the rest of the world, there have been concerns that Brexit could result it sharp fall in land values across the country.
However, Stewart Hamilton, Senior Associate in Rural Land Management at Bell Ingram, doesn’t believe this will be the case.
He said: “There’s no doubt that Brexit and the current political landscape presents some interesting questions for those looking to buy or sell land.
“When I started as a trainee in 2006, one of the first big pieces I was party to, was the first farm to break the £5,000/acre barrier.
“The general consensus was one of disbelief and agreement that we’d hit the ceiling and prices would go no further.
“However, fast-forward 12 years and we’re now seeing triple this price for top quality arable land across Scotland.”
The trend of land value has been one that’s increased steadily over the past 30 years, despite the financial crash of 2007, and Stewart believes Brexit won’t impact either.
He added: “Sentiment alone pushes farmers to pull out all the stops to buy a neighbouring property.
“Rates of return, yields on investment and levels of gearing all get forgotten when the competition begins.
“It is for this reason, combined with the favourable agricultural property reliefs available when passing the farm to the next generation that I see no reason for land values to decline, regardless of the outcome of Brexit.
“The continuation of the weak pound, slow economic UK growth and steady inflation are unlikely to raise the cost of borrowing in the short to medium term which should continue to maintain demand.”
Stewart joined Bell Ingram’s Forfar office in 2006 and heads up the firm’s AMC Agency.
A fully qualified surveyor, RICS Registered Valuer and Associate in the firm, Stewart specialises in all aspects of valuation work, Farm and Estate Management and securing AMC funding for private clients’ across Scotland.
Established 112 years ago, Bell Ingram has 130 professional staff across 11 UK offices, including chartered surveyors, estate and forestry managers, architects and building surveyors.
The depth of Bell Ingram’s expertise and experience means it can advise on any project from initial audit, through to planning, legal services and financing to sale of a completed development.
For more information, please visit: https://bellingram.co.uk/
Published on 17th December 2018