The idea of owning a slice of rural idyll in the UK appeals to many, from existing farming families wanting to expand, to new entrants to farming and even those who want a bit of extra land to enjoy next to their home, particularly on a relocation out to the country.
Agricultural land (ignoring woodlands) covers approximately 39.8m acres1, which is broadly equivalent to 71 per cent 2 of total land in the UK. While income yields are low, historic long-term capital appreciation and specific tax breaks have continued to make UK land an attractive investment for some.
One of the biggest advantages that agricultural land can offer over other types of investment is emotive. Agricultural land is tangible, real property – the owner can visit the land, grow crops or raise livestock on it, or enjoy it as leisure land. This is very different to assets such as shares, bonds or other intangible financial investments.