Carter Jonas have launched a guide to land market prospects this week and suggest that land values are set to plateau or dip slightly over coming months.
Catherine Penman, Head of Research at Carter Jonas, says values are now looking high when you take into account the potential returns from farming. Other factors influencing the market, including currency and oil prices, do not seem to support a continued upward trend. "The analysis for our new Agricultural Investment Indicator produced some interesting and, in part, unexpected results which are at odds with many of our competitors' views." said Ms Penman.
As we all know the amount of land available is finite and therefore the only factor supporting land prices at present is the scarcity of land. Ms Penman commented "The fact is there is little sign of supply increasing. But in markets where there is acute shortage of stock it is very difficult to determine true underlying value and the true risk profile."