Average farmland values in the East Midlands have continued to increase year on year across all land types while supply in the region has surged, according to property agents, Savills.
Quarterly analysis, which looks at publicly marketed farmland across the East Midlands shows that 14,276 acres of farmland were marketed during 2023 (to the end of September), compared with 6,240 acres in 2022, an increase of 129 per cent.
Lincolnshire saw the most sales of arable land, 5,398 acres.
The research highlights that farmland values in the region have also crept up during the first three quarters of 2023 with the average value of prime arable land in the West Midlands rising by 1.3 per cent to £8,740 per acre.
This compares to an increase of 2.5 per cent for prime arable land across Great Britain, sitting at £10,200 per acre on average.
The value of Grade Three arable land has increased by 6.7 per cent on the same time last year, with an average of £8,000 per acre, while pasture land is sitting at an average of £7,400 per acre, an increase of 5.5 per cent against September 2022.
Meanwhile, prime dairy land in the region is trading at £8,300 per acre, up five per cent on the average price per acre at the same time last year.
Overall, the average value of all land types – incorporating varying qualities of arable and pasture – sat at £8,200 an acre as of September, a 4.6 per cent increase on the same time last year.
Henry King, associate in the rural agency team for Savills, said: “Farmland values in the East Midlands are 13 per cent above 2020 levels. This has largely been driven by continued pent-up demand from buyers motivated by business asset rollover relief and investors which have so far insulated the market from wider economic factors and sustained overall value growth.”