Summer holidays and autumn resolutions

·       The summer holidays have as usual lead to fewer transactions in the property market, with sellers having gone to ground. We expect activity to pick up in early September when everyone is re focused at the start of the school year.

·       So for those of you thinking about a Scottish property purchase in a continually uncertain market, have a look at the following article which gives you all the reasons why it is important to enlist someone to act for you: http://www.ft.com/cms/s/2/a17697e2-9ab0-11df-87e6-00144feab49a.html.

Farmland Prices

·       RICS have reported that an imbalance of supply and demand is keeping arable prices high. They indicate demand for commercial farmland in particular and continued lack of supply will maintain land prices for at least the next twelve months.

·       Savills have reported an increase in values of farmland of up to 120% in the last five years from £2365 per acre to £5225 per acre today.

·       Little is coming to market as farmers are sitting tight and taking advantage of improved prices at the farm gate. Long term out look due to food security fears are good, however shorter term concerns centre around subsidy payments and tightening credit.

Harvest 2010

·       World wheat production estimates are cut by 13 million tonnes to 651 million tonnes with reductions in estimates of Russian, Canadian and European crops and an increase in the estimate of the American wheat crop. Wheat prices have surged on the back of these estimates.

·       Heavy rains in Canada, grain rotting in India due to lack of storage and drought combined with wild fires in Russia has lead to fear of lack of supply. The Russian Agriculture Ministry has calmed fears insisting exports would remain stable as they have sufficient resources to ensure supply to their export market.

·       Put into context, the estimates still indicate that this is likely to be the third largest crop on record.

Change of focus to Rural Development

·       The Scotland Rural Development Program (SRDP) is altering its focus, increasing the number of business development proposals financed and Local Action Groups (LAGs) will consider community projects.

·       Autumn funding for Rural Priorities will focus on agri-environment and forestry projects. Since 2008 the Rural Priorities has funded 4,000 projects worth £338 million with the aim of stimulating the rural economy, benefitting the environment and supporting rural communities.

Tags: Commercial farmland, Matthew Sinclair, Saint Property, Scotland Rural Development Program, Scottish Property Purchase