Land Prices in UK Vary Greatly, Smiths Gore

According to the results of the latest research of UK land market conducted by Smiths Gore, leading British land surveyors and agents, the price of bare land in Great Britain increased by 2% between July and September 2009, leaving an acre of average bare land priced at £4,900. Researchers say that this is the first rise in land value since the beginning of year; in the first 6 months of the year, the prices remained consistent at £4,800 per acre.
The research also showed that the price of equipped land continued its downward trend as it fell by 6% over the same time period. At the moment, the value of equipped land in UK is 24% lower than it was in summer 2008, while the price of bare land is 7% higher.
In the opinion of Smiths Gore head of farm agency, Giles Wordsworth, the fact that other agencies have reported continuous rises can be explained by a different research approach. He says that other surveying firms tended to ignore the market of equipped farms, which contributed to positive results. Also, those are only high-quality lands that are in demand and that are being sold well at prices above average; poor-quality lands often see prices being reduced.
Mr. Wordsworth added that the price difference between bare land and equipped land, known as "equipped premium", fell significantly since 2008. Last year, the "equipped premium" stood at 3,200 per acre, in the beginning of 2009 it dropped to £2,600, and now it barely reaches £2,000 per acre.
According to Smiths Gore head of investment, Mr. Gerald FitzGerald, the values of equipped farms still have more to decline, while the values of bare land are expected to increase further. Equipped land prices will start their movement upward only when the overall UK economy sees return of confidence.