British farmland prices average £8,300/ac up to September
The average price of farmland in Britain reached £8,300/ac (€9,700) in the first nine months of 2013, a new survey has revealed.
The survey, undertaken by Savills UK, indicates that the average value of farmland continued to rise across Britain during the third quarter of 2013.
Prime arable land in the east of the country achieved the highest average value at just over £9,000/ac (€10,586/ac).
The estate agency has predicted an 8.8pc rise overall for farmland prices in 2103, compared to 2012. Prime arable land is expected to outperform all other land types, given that it had already grown by 8.5pc by the end of September.
The agency also reported a widening gap between the prices paid for the best and poorest farmland. Price growth during quarter three was concentrated in the eastern and northern regions.
According to the authors of the survey, average values conceal regional variations, with value being closely linked to location, land quality and type, as well as the residential weighting of the farm. The survey points to a growing price differential between poor grassland and prime arable land values.
During quarter three, the strongest average prime arable price growth was in the eastern counties (4.6pc), Scotland (3.3pc) and the north of England (3.1pc), south east (1.9pc) and east midlands (1.3pc).
Land prices have remained stagnant in Wales since December 2012.