Commercial Finance Specialists

British farmland is becoming a more attractive commercial opportunity, according to the Royal Institution of Chartered Surveyors.

Commercial development on British farmland is becoming more attractive again, according to new findings.

The Royal Institution of Chartered Surveyors (Rics) rural land market survey indicates that the price of farmland rose in the second half of 2009.

Nearly a third (31 per cent) more surveyors said they saw demand for commercial farmland increase rather than fall over the six month period.

This underlines the importance of investors securing appropriate levels of asset financing to secure deals on the land, with prices thought to have risen due to landowners' reluctance to sell.

Commenting on the figures, Rics spokesperson Sue Steer said: "Those with land are loath to dispose of it and those without, or with a limited supply, are keen to get into the market and capitalise on its rising value.

"Couple this with the fact that farmers are increasingly optimistic about the outlook for agriculture and suddenly an investment in either pasture or arable land is a very attractive prospect."

Earlier this week, Rics UK construction market survey indicated that workloads fell towards the end of 2009.

Whether an upturn in farmland and rural land prospects will boost the construction sector remains to be seen.