To average £5,700 per acre as the effects of a growing demand from many types of buyers and a squeeze on supply took hold.
Ian Bailey head of Savills rural research says:
"This continued demand is supported by the number of new applicants registering to buy farmland, which increased by 16% during the first quarter of this year compared with 2010."
The market was strongest in East Anglia, where the number of acres available to buy was less than half of that for the same time last year. This pushed up average values by 5% to £6,553 per acre, but where competition was strongest values achieved highs of £8,500 per acre for prime arable land in the region.
Alex Lawson Director of Savills comments:
"Across England, arable land values continue to record the strongest levels of growth. The thirst for productive, well located farmland has led to record prices; several sales of substantial blocks have achieved over £10,000 per acre and prime arable land is regularly achieving over £8,000 per acre."
Supply levels continued to fall with 14,000 acres of new stock available during the first quarter in England and just 1,612 acres in Scotland. However, in England this trend was not consistent across all regions.
Volumes nearly halved in East Anglia and the South West of England, but were substantially higher in the East and West Midlands and the North of England, where a number of smaller farms rather than a few large blocks became available.
Bailey continues:
"We are standing by our forecast for between 10% and 15% growth for average land values."
