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The prices of Sussex Farmlands continue to rise
According to the Rural Land Survey done last November by RICS (Royal Institution of Chartered Surveyors), London suggests that Sussex Farmland in the UK is being targeted by the new breed of investors, fuelling demand and raising land prices.
The price rises are rivaling those of the residential sector in the past year with the average price of a Sussex Farmland for the third quarter 2004 continues to edge closer to £10 000 per hectare.
RICS finds that overall prices have risen up to 30% in 12 months and 130% since the early 1990s. Although the land prices continue to rise, this has not weakened demand for non-farmer buyers look to sussex farmland as a source of investment potential.
A possible reason for this could be relief from the Inheritance Tax, but a more likely explanation centres around non-farmers buying neighboring farmland to protect the expensive residential property they have purchased.
Latent demand is strong but sellers are few, so sales have declined to their lowest level recorded by the survey.
Despite the sale of sussex farmland declining noticeably over the third quarter, surveyors remain confident that farmland prices for the next 12 months will continue to rise.
It is expected that rising interest rates will curb future rises in sussex farmland prices, while clearer understanding of the Single Farm Payment regime may lead to more availability of land next year.
About the Author: The Author is a Land Expert based in the UK.
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