Rural listing in Scotland is attracting buyers from all over the globe, but especially from south of the border in the UK due to exceptional value for money, says a new report.
There is a total pool of approximately £300 million in farms and estates in Scotland but political and legislative uncertainty slowed last year’s market, according to the analysis from international real estate firm Savills.
Indeed last year only nine estates sold compared to more than twice that amount in a typical year but the firm expects that number to bounce back in 2015 now that the general election is over and the new land and transaction tax has been introduced.
‘There are a number of low ground and sporting listings new on the market and we anticipate a greater number of sales being completed in 2015, compared with last year, with a number having already been agreed. This is proof that the appetite for Scottish estates remains unabated, particularly from foreign climes,’ said Faisal Choudhry head of research in Scotland.
‘Shrewd buyers may consider 2015 as an opportune time to secure their listings ahead of the stronger competition that may arise. Scotland is offering terrific value for money and will need to continue to do so in the current climate to overcome any potential concerns that buyers may have. A better understanding of the Land Reform changes is helping to allay concerns from those who had been holding back,’ he added.
He also explained that uncertainty posed by Common Agricultural Policy (CAP) reform and poor weather restricted the volume of farmland coming on to the market in the first half of 2015, with low supply upholding values.
Current values are closely linked to location, land quality and the residential weighting of the farm and there is a widening value gap between the most and least sought after land, the report points out.
Prime arable land is likely to sell for between £7,500 and £9,000 an acre, while secondary land might reach between £5,000 and £7,500 and there is a shift in buyer profile with the farmland market now being driven by farmers rather than investors.
English buyers are continuing their close interest in Scottish farmland, spurred on by the record value gap and Savills Research projects that average UK farmland values are set to grow by around 4% per annum over the next five years.
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Source: Property News Spain