Take a look at assets

Rising land prices for the first time in five years and changes to capital gains tax from next spring are pointers to Shropshire and border counties landowners to review management of their assets.

The message comes from Shropshire-based Balfours Property Professionals.

Spokesman Tim Main explains: "There has been a much smaller land market during the past six years, since the 2001 outbreak of foot and mouth. During the first six months of 2007 there was half the amount of land, only 85,000 acres, marketed nationally compared to 10 years previously.

"Furthermore, for the past five years the national average price of land has remained static at £3,000 per acre, however this year we have seen a significant and sustained rise to £4,000 per acre."

The rise in price, partially generated by improved cereal and milk prices, could be a trigger point to bring more land to the market next spring.

This is compounded by the chancellors promised changes to capital gains tax, which could see a hefty increase in capital gains paid by landowners - as CGT is restructured from 40 per cent, with sliding relief to a blanket 18 per cent.

Mr Main continues: "We have recently seen land in Shropshire auctioned to £6,000 per acre; the increase appears to be fuelled partially by farmers, but equally by lifestyle buyers. A third category - overseas buyers, especially Irish and Danes, currently view UK farms as a good investment compared to land prices back home and are also driving prices up.

"At Balfours we consider the whole picture - back in 1982 land values were £2,000 per acre, it is a sobering thought to consider that if one invested £2,000 into a house in 1982 it would now be worth £147,000 using the national indices.

"The message to come out of all this is that anyone who is considering selling land in the next five years should actually review and plan as soon as possible to ensure that they are not caught by CGT rates to be introduced next spring and that they are taking advantage of the rise in land values," adds Mr Main. For more information and detailed advice call 01743 353511 or visit www.balfours.co.uk