English farmland hits new high of Â¤6,800/ac
The price of agricultural land in England has reached a new high by breaking through the £6,000/ac (€6,700/ac) barrier, new research has revealed.
The Knight Frank Farmland Index showed that farmland values rose by almost 3pc in the second quarter of this year and are now almost 7pc higher than they were 12 months ago.
English land is now worth on average £6,156/ac (€6,874/ac), compared to £5,769/ac (€6,442/ac) in the second quarter of last year.
"A shortage of good farms for sale and strong demand from farmers, investors and lifestyle buyers have helped push up prices," said Andrew Shirley, head of research at Knight Frank.
However, there are signs that the market is starting to flatten and further growth is expected to remain relatively steady for the rest of the year.
"Efficient farming businesses are still keen to expand, but are being relatively cautious at the moment, especially as interest rates are expected to rise later this year or in early 2012," he said.