UK farmland prices rising

The average price for U.K. farmland is rising at the fastest rate in 30 years, according to Knight Frank, the property company. Values jumped 33.2 percent in 2007, hitting £4,178 per acre in the third quarter (€5,798), compared to £3,137 a year earlier (€4,353).

Demand is being driven by “lifestyle purchasers”—who want a taste of the rural quality of life more than the opportunity to work the land—and foreign buyers, according to Knight Frank. Fifteen percent of all U.K. farmland is now bought by overseas buyers—primarily from Ireland, northern Europe and Russia, the company’s research shows.

Knight Frank says the supply of available land is simply not keeping pace with demand.

“Farmland is fast becoming the latest must-have accessory for Britain’s mega-rich elite,” The Independent reports.