Land Values Up By 15per cent

Press, Volume CIV, Issue 30847, 4 September 1965, Page 8

Land Values Up By 15per cent

TTHE average price of freehold country properties sold in the year to the end of March this year was 15 per cent higher than in the previous year. For 8642 properties embracing nearly 1.6 m acres the average price was £49.27 an acre.

Noting this the annual review of the sheep industry issued by the Economic Service of the Meat and Wool Boards says that as yet there

is no evidence that the optimistic move into higher prices which ruled in the 1950 s has lost its momentum, although the cost-price squeeze, together with a lower level of rapid capital gain, must be beginning to exert an influence. c

However says the Service, there remains, as strong as ever, an unsatisfied demand for land which in turn must result in the market being held to the highest level possible consistent with a reasonably safe profit margin for the buyer. On a percentage return per annum basis present values are not exactly likely to give a generous yield, it is stated, but the margin of improvement possible on most farm land still continues to make it attractive to buyers, and as long as there is a potential there will be a strong demand.

Figures given by the Ser-, vice indicate that the averageprice for the properties between 250 and 500 acres in the latest period was £47.50 an acre, compared with £40.12 in 1963-64 and £27.80 in 195556. At the same time the average for properties of 500 acres or bigger rose to £16.46 an acre from £13.32 in 196364 and from £10.06 in 195556.