2025-01-29-莱坊-English_Farmland_Index_Q4_2024_2页_283kb

Knight Frank Farmland Index Summary for Q4 2024

Market Overview

The Knight Frank Farmland Index tracks the average price of bare agricultural land in England and Wales. In Q4 2024, the market demonstrated resilience, with a slight decrease in values from Q3 to Q4, reflecting expert valuations and market dynamics.

Key Financial Performance

• Average price per acre: £9,164 (up 0.1% year-on-year).
• Short-term change (3 months): -2.0%.
• Long-term changes: +30.9% over 5 years, +15.6% over 10 years.
• Factors influencing prices: Challenges such as wet weather, government environmental schemes, and tax changes are noted, with inheritance tax (IHT) relief removal causing temporary dips but not reflecting actual deal activity.

Supply and Demand

Land availability remained historically low, with less than 90,000 acres listed in 2024. Demand continues to exceed supply, driven by buyers including institutional investors and environmental NGOs, supporting market stability.

Expert Insights

Experts highlight the multi-functional nature of farmland as an asset, with opportunities in carbon opportunities and alternative income streams post-Brexit and net-zero era. Resilience is expected to persist despite policy changes.

Comparative Analysis

Historical data shows strong long-term capital growth in farmland compared to other assets like gold, global equities, and UK residential properties, underlining its role in diversified portfolios.