Average arable land values rose by 2.8% to £10,206/acre in 2015, but the average masks wide and significant local and regional variations within the market.

According to analysis of the Strutt & Parker Farmland Database, average prices paid in the East of England have eased back, whereas prices in the south east of England have risen.

In the East of England the average price paid for arable land fell from £11,528/acre in 2014 to £10,135/acre in 2015, reflecting a fall in the number of buyers willing to pay premium prices.

Michael Fiddes, head of farm agency at Strutt & Parker’s Cambridge office, said: “In 2015 we have continued to see a huge range in prices achieved per acre in the east - a reflection as much on local demand as land quality.

“The difference between 2015 and the previous year is fewer buyers paying premium prices which is reflected in a lower average price  - not surprising with commodity prices under pressure.”

Will Parry, head of estate and farm agency in the Northern region, agreed: “Values have remained buoyant, but this does mask an ever widening spread of prices.

“Quality, not quantity will be a trend going forward with buyers seeking farms and land with good infrastructure, access and possible development angles. 

While prices also generally eased back elsewhere over the second half of the year too, the average price of arable land in the south east of England rose by 10% between 2014 and 2015 from £10,189/acre to £11,271/acre. 

Price rises were also recorded in the West Midlands (up 9%), East Midlands (up 6.6%) and south west (up 4.8%).

In the North of England, analysis shows average prices for arable land fell by 2.3% while the price paid for pasture rose by 14.8% from £5,389/acre to £6,186/acre.

Strutt & Parker also saw an 11% increase in average arable land values recorded in Scotland, taking the average price to £7,510/acre.

Mark McAndrew, head of Strutt & Parker’s estate and farm agency department, said: “There has been a readjustment in prices, largely driven by falls in commodity prices which has made farmer-buyers more cautious.

“Big prices are still being achieved in some areas, but it is generally less common.”

Mr McAndrew said he expected prices to remain flat for the next year to 18 months and then start to rise again in 2017.

“The short-term outlook is sluggish but we expect prices to pick up again from 2017 onwards. Our forecast is that prices could rise by 11% over the next five years.”