Rent Prices - RICS

Published 8 May 19

  • Rent levels across England and Wales (under ATA95) for pasture rose between H1-2018 and H2-2018 increasing £28 / hectare (12.2%). The average price increased by £28 / hectare (12.4%) between H2-2017 and H2-2018 to £257 / hectare.
  • The highest rental level for pasture land (under ATA 95) in H2-2018 was seen in the North West with an average rental level of £309 / hectare. This was a £30 / hectare (10.6%) increase when in comparison to H1-2018 and a £62 (25.0%) increase between H2-2017 and H2-2018.
  • Rent prices for pasture land (under ATA 95) decreased in the South East, between H1-2018 and H2-2018. It was the largest and only fall in this period, decreasing from £185 / hectare to £136, a reduction of £49 (26.7%). The largest fall in rental price between periods H2-2017 and H2-2018 was a drop of £43 (24.1%) also in the South East.
  • Increases in rental value for pasture land (under ATA 95) between H1-2018 and H2-2018 were seen in the Eastern (43.7%), East Midlands (17.6%), North East (25.0%), North West (10.6%), South West (11.7%), Wales (15.0%), West Midlands (18.8%) and Yorks Humber (5.3%) regions.
  • ATA 95 rent levels for pasture land in Wales in H2-2018 stood at £284 / hectare, an increase of £37 / hectare (15.0%) when compared to H1-2018 and an increase of £37 / hectare (15.0%) on H2-2017.
  • The average rental price for arable land in England and Wales (under ATA 95) experienced an £11 / hectare (3.2%) increase between periods H1-2018 and H2-2018 to £367 / hectare. There was a 5.7% increase in rental prices when periods H2-2017 and H2-2018 are compared.
  • The lowest price paid for arable was seen in the South East at £278 / hectare for H2-2018. There was a £68 / hectare (19.6%) drop between H1-2018 and H2-2018.

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

 

AHA 86

ATA 95

 

£/ac

£/ha

£/ac

£/ha

H2-2018

60

148

104

257

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