Turbulent money markets have put increasing pressures on investors looking for a safe haven for their money.
While trillions of pounds are wiped off the stock markets there is an increasing awareness of other opportunities to grow investments – literally.
Agricultural land, often taken for granted, is proving to be a wise investment for those with patience and an appreciation of countryside values.
They say money does not grow on trees but with a wise investment it is still proving possible to make money from land.
So, while the stock market continues to tumble those in-the-know are seizing the opportunity to buy land.
Anthony Champion, senior partner at chartered surveyors Halls Worcester, is a specialist in the land market and sees real rewards for those who take the decision to buy and sell.
"The current market is very strong and there is slightly more volume of land this year than last but the market has shown no signs yet of reducing," said Anthony, who has more than 30 years in the property industry.
There are three main types of buyers – commercial farmers, looking to increase their land holding, ’lifestyle’ farmers, keen to build a new life in the country and financial investors, aiming to manage issues like inheritance tax.
Anthony said: "Each has a good reason for wanting to invest in land and it has proved to be a good shelter for anyone with available money."
Indeed in the last decade the price has increased from an average of £3,000 per acre to around £6,000 – an excellent return for those looking to grow their investment and bringing real benefits for owners of farm land considering a good time to sell.
"Land has nearly doubled in price in the last ten years and I would not be surprised in the next decade it doesn’t double again. It really is just a matter of time," said Anthony.
There are a wealth of reasons why land is bought and sold but growing demand for ’home grown’ commodities like cereals and vegetables are giving fresh momentum to commercial farms, keen to extend their acreage and productivity.
Opportunities often come through an estate owner’s death or through farmers looking to sell before retirement.
Anthony explained: "There is still a strong nucleus of good, successful farmers who feel confident that there is a demand for commodities and so they are in need of more land. This will fuel land prices because we are not making more land and the extra crops have to grow somewhere."
Other opportunities to clinch sales come from developers who are particularly interested in acquiring land on the edge of existing towns and villages.
Anthony’s specialist knowledge in strategic planning enables him to give advice to key land-owning clients including church charities, institutions and major landowners.
Local authorities are obliged to manage the strategic growth in any area through the Development Plan. This blueprint tracks a district’s growth up until 2030 and highlights areas landmarked for housing and industrial development enabling potential investors to spot lucrative opportunities.
"We have one or two clients who want to know when we have any land available on the edge of a town or a village and will want to buy it and lock it away," said Anthony.
"It is a specialist area but one that can give real opportunities to land owners who may not always realise the potential of what they own. We represent land owners on both sides of the fence – some who want to sell for development and others who want to retain land to prevent it from being developed.
"Some people are sitting on land unaware of its true value. It may have been worth £3,000 an acre ten years ago but values have risen."
Interest from developers for specific pockets of land may mean even a bigger bonus for unsuspecting landowners.
"To be honest if there is an opportunity for a farmer to turn £6,000 to £7,000 an acre into half a million pounds an acre because it is wanted for development then for the majority it is not a difficult decision," said Anthony.
Other investors recognise the opportunity to buy a ready-made property portfolio. The majority of the farming estates put up for sale will have a principle farmhouse plus a range of other buildings including smaller homes.
Anthony said: "It makes sense to many clients because they can buy not only the properties but the land. It is a safe haven for their cash."
This recognition is highlighted in the growing demand from buyers to buy estates like Bransford Court Farm, a traditional farming estate which nestles in the gentle rolling hills overlooking the Malvern Hills and city of Worcester.
The family, who have farmed the 173 acre estate, took the decision to sell in early June and just five weeks later an offer was accepted.
The sale was handled by Paul Bowness, an Associate Partner at Halls Worcester, who said under current conditions the swiftness of the transaction came as no surprise.
The estate, which had a £1.65 million guide price, includes two houses, a lodge house, modern farm buildings, productive arable land, temporary pasture, woodland, four lakes and extensive fishing rights next to the River Teme.
Paul said: "The estate offers a lot of what people are looking for. You have the amenities like the woodland for shooting, fishing in the river and then there is the agricultural and residential aspect.
"In this instance there is not a big grand farmhouse, which some lifestyle farmers are looking for, but there was very strong interest. Interest for this type of property not only comes from commercial farmers but those who want to live in a rural setting. They see it as a way of owning a country house and, because they own the surrounding land, can control their views."
A desire to buy and having the funding to make this a reality can often be a step too far for some buyers but banks are making an ongoing commitment to support realistic enterprises.
Paul said: "The banks are still showing an interest in agricultural businesses and recognise the value of making the investment.
"Everything is doom and gloom but when it comes to agricultural land there is a definite positive vibe. I don’t think people are looking to make quick money what they are looking for is a secure investment. It is difficult to say what the future holds but even if values have peaked it is unlikely that there will be any dip in values.
"No more land is being made so someone from Birmingham or London who has money to invest will understand there is a real opportunity.
"While there seems to be so much doom and gloom in the financial markets here is one positive light. It may not be a high yielding return but it makes sense to many people who simply have money to invest without being too concerned about the value of the Euro or the current stock market prices. Agricultural land is proving to be resilient."
Not just a green and pleasant land but an opportunity to reap real financial awards.
