Prices on the rise

After years of relatively static prices, bare land has finally moved upwards during the latter part of 2005 and throughout 2006, says Mike Taylor of Barbers.

"Much of the pasture and arable land in the north-west Midlands has been selling at between £2,000 and £3,000 per acre for the past ten years in medium to larger size blocks.

"Finally prices have moved through the £3,000 per acre average and many sales are now approaching £4,00 per acre.

"Smaller blocks of land and even larger blocks with specialist interest have always bucked the trend, but for the first time we now see land selling consistently over £3,000 per acre.

"One of the main drivers has been an influx of city money looking for a safe haven from Inheritance Tax. Interestingly, there is now a substantial petition on the 10 Downing Street website calling for repeal of Inheritance Tax.

"It is a relatively expensive tax to administer with a relatively small yield, but the chances of any change are probably very remote."