Demand for farmland in Great Britain has further decreased, having now been declining for the last 18 months, according to the latest RICS/RAU Rural Land Market Survey. 

Respondents are highlighting uncertainty over Brexit and insecurities over future subsidies, as well as low commodity prices as the key factors hindering the market.

Alongside the decline in demand, the amount of land available for sale has also decreased across Great Britain for the first time since 2014, with 19% more respondents noting a decline in availability (rather than an increase).

The lack of demand for rural land is impacting prices with the transaction based price index falling for a second consecutive quarter.  Farmland prices have dropped to £10,233 per acre in H2 2016 – this is down 7% from last year.

The slowing of the market is also predicted to lead to a further decline in prices over the next 12 months and 17% more respondents expect prices for land with a residential component to fall rather than rise. The price outlook is even weaker for commercial farmland, with a net balance of 31% of respondents expecting values to decline over the next twelve months.