Scotland business

Scottish farmland prices remain steady, surveyors report

farmer with sheep Image copyright Reuters
Image caption Flooding affected the price of Scottish farmland during the latter part of 2013

The price of farmland in Scotland remained steady throughout the second half of 2013, surveyors have reported.

The average price of land in Scotland averaged £3,750 per acre.

The Land Market Survey by the Royal Institution of Chartered Surveyors (RICS) indicated that flooding across the UK had impacted on land values.

However, more than 80% of surveyors anticipated a rise in Scottish land prices over the remainder of this year.

'Fierce competition'

Sarah Speirs, Director of RICS Scotland, commented: "Farmland price growth in Scotland has remained consistent during the last five years with prices averaging £3,750 per acre.

"With commodity prices now having remained strong for some time, many farmers have been looking to expand their businesses and, with so little actually coming up for sale, competition for good land is fierce.

"Although, with floods having devastated large swathes of southern England and parts of Scotland affected, what remains to be seen is the impact this has on the market in these areas and further afield. It will not be surprising to see this have a negative effect on transactions."

A net balance of 80% chartered surveyors predicted a rise in farm land prices in Scotland over the coming year.

This followed 60% more respondents reporting an increase in demand for Scottish farm land in the second half of 2013.

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