RURAL farmland is proving a sound investment according to the latest research.

Despite testing economic circumstances, the Rural Property Index shows investment in farmland delivered a positive annual return of 1.7 per cent in 2008.

The research was carried out by the Investment Property Databank and was co-sponsored by property consultants Carter Jonas.

Julian Lambton, partner of Carter Jonas based in Kendal, said: “While other major asset classes were savaged in 2008, rural property fared very well in comparison, generating a rare positive return for investors and showing genuine resilience. It is a valuable hedge against general market volatility and a useful component of any investment portfolio."