Two Centuries of Farmland Prices in England

Jadevicius, Arvydas, Huston, Simon, Baum, Andrew and Butler, Allan Two Centuries of Farmland Prices in England. Journal of Property Research.

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Abstract

The dissemination of robust asset price data can help to improve market efficiency, resource allocation and investment analysis. Beyond commercial decisions, land prices influence housing affordability, food security or low carbon infrastructure. Yet price
and return histories for farmland in England are fragmented. To provide perspective, a long farmland price series improves transparency and brings the asset class in line with available commercial and residential real estate. After reviewing the historical backdrop and considering methodology, the research used a chain-linking approach to construct a long-term farmland price series for England. It then adjusted the series for inflation to examine real land prices. The resulting two-century English farmland prices series contributes to farmland market analysis.
Notwithstanding some concerns with long-run chain component heterogeneity, the combined series illuminates English average farmland price dynamics. For more than two centuries, English land price real capital returns were positive. Farmland real price growth was 0.33 per cent annually from 1781 to 2013 and 0.71 per cent from 1801 to 2013 as measured by the geometric mean. The series contributes to understanding of land price dynamics and has policy implications.

Item Type: Article
Keywords: Finance
Subject(s): Finance
Date Deposited: 17 Oct 2017 15:24
Last Modified: 13 Nov 2017 11:00
Funders: not applicable
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6600

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