Rent Prices - RICS

Published 26 September 14

  • Rent levels across England and Wales for both pasture and arable have been quite variable between H1 2013 and H1 2014. The average rent level for pasture land in England and Wales (ATA 95) rose by £10 (4.2%) to £256/hectare between H2 2013 and H1 2014. There was however a £14 (5.1%) yearly decrease between H1 2013 and H1 2014.
  • The highest rental level for pasture land (under ATA 95) in H1 2014 was seen in the North West with an average rental level of £358/hectare. The largest increase between H2 2013 and H1 2014 was seen in Wales up £62 (31.3%) to £259/hectare.
  • Rent prices for pasture land (under ATA 95) decreased in the Eastern, North East and North West, between H2 2013 and H1 2014. The largest fall was seen in the Eastern region, decreasing from £247/hectare in H2 2013 to £173/hectare in H1 2014 a reduction of £74 (30.0%). This was also the lowest rental value (under ATA 95) in H1 2014.
  • The average rental price for arable land in England and Wales (under ATA 95) rose from £387/hectare in H2 2013, to £401/hectare in H1 2014, a 3.6% rise. The largest increase of the half year was seen in the East Midlands up £136/hectare  to £519/hectare also the highest price paid for arable land (under ATA 95) in H1 2014. The lowest price paid for arable was seen in Wales which saw a fall of £124/hectare between H2 2013 and H1 2014 to an average rental price of £321/hectare.

Rent Levels for Dairy Farms (pasture land) in England and Wales

 

AHA 86

ATA 95

 

£/ac

£/ha

£/ac

£/ha

H1-2014

61

151

104

256

Note= All figures are median only. Data is based on surveyor opinions of bare farmland rents. England and Wales rent figures are the weighted average of all regions.

ATA = Agricultural Tenancies Act 1995; AHA = Agricultural Holdings Act 1986.

Note: There are  two types of agricultural tenancy in operation,  AHA 86 and ATA 95. Those agreed before 1 September 1995 are  known as 1986 Act tenancies (AHA 86)  and those agreed after 1 September 1995  are known as Farm Business Tenancies (ATA 95). These two types of tenancy operate quite differently. For example, AHA 86 tenancies carry succession rights whereas Farm Business Tenancies are typically short term. Therefore, there are typically differing levels of rent between the two types of tenancy within the same region, with ATA 95 tenancies usually being more expensive. Details can be found at this link:

https://www.gov.uk/agricultural-tenancies

Source: RICS

Rent Prices