Whilst the first half of 2014 experienced a slower rate of growth in land values than in previous years, the latter part of the year caught up, bringing the average for the year to £9,796 per acre.

Some notable sales of sizeable blocks of farmland, predominantly in the Eastern, Central and Southern regions (see Figure 2) assisted in increasing the arable land price by 13% compared with the 2013 figure.

Pasture land values for the year have also increased, albeit by a lesser rate, to £6,839 per acre, up from £6,438 per acre in 2013.

The large commercial arable land sales that have taken place in the last 6 months, some of which were offmarket, show a continuation of the demand from investors, both private and institutional, purchasing land to act as a safe, long-term investment and for prudent tax planning.

The number of investors purchasing farmland has kept relatively consistent over the past three years, however the gap between what they are prepared to pay and what a farmer can afford has increased, giving rise to a two tier market and pushing up the overall average prices.

View the full English Farmland Market Review 2014 round-up.