Fall in land prices will result rise in new rural business start-ups

Market conditions appear to be encouraging a wave of new types of rural business
Fall in land prices will result rise in new rural business start-ups

Various projects has been carried out internationally and nationally to help to increase rural income and livelihood source. Rural development basically depends upon the entrepreneurship. Therefore to encourage and help people to take up work and in turn gain profits several seminars and programmes has been conducted.

In the context, increasing urban property prices and falling land values could be fuelling a rise in new rural business start-ups and lifestyle farmers, the latest survey by the Royal Institution of Chartered Surveyors (RICS) and Royal Agricultural University (RAU) indicates.

Non-farmers, such as those starting-up cottage industries and lifestyle farmers, accounted for around 25 percent of rural land sales over the past six months. This figure was up from just 18 percent in the first half of 2015, according to the RICS/RAU Rural Land Market Survey H2 2015 and the trend was strongest in South East England where non-farmers accounted for 32 percent of all sales.

RICS Chief Economist, Simon Rubinsohn said: “While rural land prices have risen over recent years, the global fall in crop prices is likely to cause prices to drop over the next 12 months.“Added to that, commercial and residential property prices in our towns and cities are continuing to rise. This is likely to make rural land increasingly attractive to those outside traditional farming communities. Already, a quarter of all countryside land is being purchased by non-farmers – lifestyle buyers or hobby farmers – throw all these factors into the mix and this trend is set to rise.”

RICS Head of Policy, Jeremy Blackburn said: “Start-up businesses do not have to be confined to the trendy streets of East London, Britain’s countryside has a great deal to offer young entrepreneurs. Market conditions appear to be encouraging a wave of new types of rural business, and help must be given to support this trend further if our countryside communities are to thrive.

“New entrants to farming businesses continue to face barriers, but at RICS we are currently working with the Fresh Start Land Enterprise Centre (FSLEC) who are developing a pilot ‘matching service’ for potential land entrepreneurs, helping to bring together those looking for new opportunities in agriculture with those who have land and rural real estate to let.” 

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