UK farmland has continued to be one of the best-performing asset classes so far this year, with demand far outstripping supply. Farmland values in the country have climbed to an all-time high during the first quarter of 2011 and now stand at GBP 7,900 per acre.
This is a four per cent increase on the previous quarter and analysts claim it shows the current strength of the market when compared to other sectors, a report from Smiths Gore revealed.
"Prices are still rising due to strong demand, from both farmer and non-farmer buyers, and the continuing low supply of land for sale," said Giles Wordsworth, head of Farm Agency at Smiths Gore.
Just over 16,000 acres were marketed in January to March - the same as last year - the report revealed. This constricted supply is attracting interest from investors and is helping to push prices up.
Earlier this year a report from the Royal Institute of Chartered Surveyors found that on average there was an increase of six per cent in farmland values in the UK. Land was most expensive in the north-west at GBP 17,300 per hectare, while the cheapest land was in Scotland, priced at GBP 9,100.