The firm also says demand for farmland in Gloucestershire is outstripping supply.
The English farmland market has shown remarkable resilience compared to other asset classes during the recession with average values increasing by 20% over the past 12 months, according to the Knight Frank Farmland Index. The index is now at an all-time high of £5,769/acre.
Farmland in Gloucestershire and other parts of the Cotswolds, however, has outperformed the rest of the county with the average price achieved by Knight Frank over the past 12 months hitting £8,842/acre. Two estates within 12 miles of Cirencester were sold for over £10,000/acre.
Atty Beor-Roberts, head of Knight Frank’s Cirencester office said:
“In 2006/07 land values stood at £3,500 to £4,000/acre in Gloucestershire and the Cotswolds. Now, at £8,842/acre on average, values have more than doubled in just a few years.
“Land in the Cotswolds and Gloucestershire is a rare and sought after commodity. Supply is limited and demand remains strong. When land comes onto the market in the area, it presents a once in a lifetime opportunity to buy.
“Gloucestershire offers some stunning countryside, and a train journey into London Paddington of just one hour. Commuters can travel from door to desk in under two hours. People also like to own tangible assets such as farmland in these tough economic times.”
Clive Hopkins, head of farms and estates sales said:
“The benefit of farmland being exempt from inheritance tax has been a boost to sales in the Cotswolds and Gloucestershire areas.
“Landowners in the area now have the opportunity to benefit from prices being 34% higher than the national average, and with many of the purchasers being private individuals, landowners can sell discreetly, with limited publicity, on timescales that suit them.
“Now is a good time to sell land because the future for interest rates remains uncertain. Low interest rates offer a false level of security for people who have geared up against their land. When interest rates rise, that gearing will really begin to hurt.”
Have your say on this story using the comment section below