Jump to content
House Price Crash Forum
Sign in to follow this  
Locke

Savills Farmland Price Index vs The Housing Crisis

Recommended Posts

Many people believe that lack of housing has driven HPI, while some of us contend that easy money has blown up asset prices, while much of the housing stock sits unoccupied.

 

I bring to you Savills Farmland Price Index 

http://www.savills.co.uk/farmland-value/index.html

If the HPI is down to housing shortage, how is it that farmland has followed a broadly similar pattern?

Is the increase in Farmland price since 2001 an indication of inflation at 9.6% annual, or does it indicate that farmland became an investment asset around that time?

Share this post


Link to post
Share on other sites

Both are being driven by speculation, nothing else

 

EVERYTHING of any value detached from any kind of reality when the bankers were handed printed money.

 

This is a crime of the highest order and should be treated as such.

 

Share this post


Link to post
Share on other sites

Tell me about it, I rent a small farm and saved to try and buy one of my own, but the printed money pushed the price up so fast my earnings didn't even come close to keeping pace with it. As it stands at the moment , a car is the price of a house, and a house is the price of a farm if you see what I mean. Ive given up on the idea of owning my own farm now, I'm too old and my interest has ebbed away.

Share this post


Link to post
Share on other sites
2 hours ago, simon49 said:

Tell me about it, I rent a small farm and saved to try and buy one of my own, but the printed money pushed the price up so fast my earnings didn't even come close to keeping pace with it. As it stands at the moment , a car is the price of a house, and a house is the price of a farm if you see what I mean. Ive given up on the idea of owning my own farm now, I'm too old and my interest has ebbed away.

So sorry to hear that Simon.  Dreams denied and blighted lives everywhere you look thanks to the ignorant greed of a minority. 

Share this post


Link to post
Share on other sites

As I understand it, farmland is free of inheritance tax, and merely owning it qualifies you for EU subsidies, hence its price is completely divorced from its utility value.

Share this post


Link to post
Share on other sites
4 hours ago, Rave said:

As I understand it, farmland is free of inheritance tax, and merely owning it qualifies you for EU subsidies, hence its price is completely divorced from its utility value.

This is true about the inheritance angle and this had resulted in the price of land becoming directly linked to its fundamental economic value. This makes farming less profitable as an enterprise for new entrants but still an effective investment for those dodging IHT.

For the latter, the economic yield of the land is not very important - it helps fund the cost of carry, but otherwise does not make a huge difference. 

Share this post


Link to post
Share on other sites
9 hours ago, simon49 said:

Tell me about it, I rent a small farm and saved to try and buy one of my own, but the printed money pushed the price up so fast my earnings didn't even come close to keeping pace with it. As it stands at the moment , a car is the price of a house, and a house is the price of a farm if you see what I mean. Ive given up on the idea of owning my own farm now, I'm too old and my interest has ebbed away.

Simon - your last line has too much pathos for words and demonstrates the mess we are in 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   94 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.