Savills has slightly downplayed its projections for farmland values growth for the UK from its projections at the beginning of 2013. The consultancy forecasts a growth rate of “around 6%” per year for the next five years saying that market influences are “finely balanced’. In the beginning of 2013 Savills forecasted growth of 6.7% for 2014, 6.4% for 2015, 6.6% for 2016, and 6.4% in 2017 as compared to a growth rate over the past decade of a total of 270% or the equivalent of more than 10% per year. So far in 2013 prices have increased 22% in the east of England, 15% in the East Midlands, but below 8% in other regions of the UK. Threats to future growth include higher interest rates, profitability pressures, and changes in taxation and subsidy programs. However on the positive side there is a shortage of available arable land for sale putting upward pressure on prices. In 2013 only 143,500 acres were publically marketed – half that of the year 2000.
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