Rent Prices - RICS

Published 11 May 18

  • Rent levels across England and Wales (under ATA95) for pasture have declined between H1-2017 and H2-2017 falling £4/hectare (1.5%). The average price declined by £3 (1.1%) between H2-2016 and H2-2017 to £229/hectare.
  • The highest rental level for pasture land (under ATA 95) in H2-2017 was seen in the West Midlands with an average rental level of £297/hectare. This was a £37 (11.1%) decrease when in comparison to H1-2017 and a £37 (14.3%) rise between H2-2016 and H2-2017.
  • The only increases in rental value for pasture land (under ATA 95) between H1-2017 and H2-2017 were seen in the Eastern region, East Midlands and South West with increases of 25%, 15.8% and 42.9% respectively.
  • Rent prices for pasture land (under ATA 95) decreased in the North East, North West, South East, Wales, West Midlands and Yorks Humber between H1-2017 and H2-2017. The largest fall in this period was seen in the North West, decreasing from £395/hectare to £247, a reduction of £148 (37.5%). The largest fall in rental price between periods H2-2016 and H2-2017 was a drop of £86 (25.9%) also in the North West.
  • The average rental price for arable land in England and Wales (under ATA 95) experienced a £14 (3.8%) decrease between periods H1-2017 and H2-2017. There was a 4.2% increase in rental prices when periods H2-2016 and H2-2017 are compared.
  • The lowest price paid for arable was seen in the South East and Yorks Humber both at £316/hectare. The South East fell 8.6% (£30) and Yorks Humber fell 11.7% (£42) between H1-2017 and H2-2017.  
  • ATA 95 rent levels for pasture land in Wales in H2-2017 stood at £247/hectare, down £37 (9.7%) on H1-2017 and unchanged from H2-2016.

Land rent levels for dairy farms (pasture land) in England and Wales

 

AHA 86

ATA 95

 

£/ac

£/ha

£/ac

£/ha

H2-2017

58

143

93

229

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

062_rent _prices _graph

Note: Annual prices are averages of H1 and H2