Rent Prices - RICS

Published 19 October 18

  • Rent levels across England and Wales (under ATA95) for pasture have remained almost static between H2-2017 and H1-2018 increasing £0.5/hectare (0.2%). The average price declined by £3/hectare (1.3%) between H1-2017 and H1-2018 to £229/hectare.
  • The highest rental level for pasture land (under ATA 95) in H1-2018 was seen in the North West with an average rental level of £279/hectare. This was a £32/hectare (13.0%) increase when in comparison to H2-2017 and a £116 (29.4%) decrease between H1-2017 and H1-2018.
  • Increases in rental value for pasture land (under ATA 95) between H2-2017 and H1-2018 were seen in the Eastern region, North West, South East, South West and Yorks Humber with increases of 16.0%, 13.0%, 3.4%, 10% and 5.6% respectively.
  • Rent prices for pasture land (under ATA 95) decreased in the East Midlands, North East and West Midlands between H2-2017 and H1-2018. The largest fall in this period was seen in the East Midlands, decreasing from £272/hectare to £210, a reduction of £62 (22.7%). The largest fall in rental price between periods H1-2017 and H1-2018 was a drop of £116 (29.4%) in the North West.
  • The average rental price for arable land in England and Wales (under ATA 95) experienced a £8/hectare (2.4%) increase between periods H2-2017 and H1-2018 to £356/hectare. There was a 1.6% decrease in rental prices when periods H1-2017 and H1-2018 are compared.
  • The lowest price paid for arable was seen in the North East at £309/hectare for H1-2018. There was a £62/hectare (16.7%) drop between H2-2017 and H1-2018.
  • ATA 95 rent levels for pasture land in Wales in H1-2018 stood at £247/hectare, remaining static when compared to H2-2017 and a decrease of £25/hectare (9.1%) on H1-2017.

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

 

AHA 86

ATA 95

 

£/ac

£/ha

£/ac

£/ha

H1-2018

57

140

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