Rent Prices - RICS

Published 26 August 16

  • Rent levels across England and Wales (under ATA95) for pasture have declined between H2-2015 and H1-2016 falling £17/hectare (7.1%). The average price declined by £20 (7.7%) between H1-2015 and H1-2016 to £237/hectare.
  • The highest rental level for pasture land (under ATA 95) in H1-2016 was seen in the North West with an average rental level of £279/hectare. This was a £17 (5.8%) drop when in comparison to H2-2015 and a £67 (19.3%) drop between H1-2015 and H1-2016.
  •  The only increase in rental value for pasture land (under ATA 95) between H2-2015 and H1-2016 of £5/hectare was seen in the South West region, increasing to £259/hectare.
  • Rent prices for pasture land (under ATA 95) decreased in the Eastern, North East, North West, South East, Wales and the West Midlands, between H2-2015 and H1- 2016. The largest fall in this period was seen in Wales, decreasing from £297/hectare to £247, a reduction of £49(16.7%). The largest fall in rental price between periods H1-2015 and H1-2016 was a drop of £74 (23.1%) which was also seen in Wales.
  • The average rental price for arable land in England and Wales (under ATA 95) experienced a £22 (6.0%) decrease between periods H2-2015 and H1-2016. There was a 3.4% decrease in rental prices when periods H1-2015 and H1-2016 are compared.
  • The lowest price paid for arable was seen in the West Midands which fell 20.0% (£74) between H2-2015 and H1-2016 to £297/hectare  

  

Land rent levels for dairy farms (pasture land) in England and Wales
  AHA 86 ATA 95
  £/ac £/ha £/ac £/ha
H1-2016 60 148 96 237

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
Note: Annual prices are averages of H1 and H2