Farmland values in the east of England have hit an all-time high - and agents predict they will continue rising for the next five years.
Rural advisors at Savills say farmland is likely to remain in "comparatively scarce supply" amid continued economic and political uncertainty.
As a result, prime arable land values are expected to increase annually by an average of 2.5pc above inflation for the next five years, while poorer quality pasture is predicted to climb by an average of 6pc.
While markets are likely to remain "highly localised", land types in highest demand - including top-quality arable land and poorer-quality grazing land popular with environmental investors - are expected to be the best performers.
The forecasts follow a strong year for the region's land market.
According to Savills, the average value of all farmland in the east of England leapt by 15pc to £9,679 per acre, compared to £8,407 at the end of December 2021 - the highest figure of any region and 23.9pc higher than the national average.
Meanwhile the average value of the east's prime arable land has hit £10,528 per acre – 5.9pc higher than the national average.
Christopher Miles, who leads Savills' rural agency team in the east of England and is based in the firm’s Norwich office, said: "The average value of farmland is at an all-time high and for those that do choose to sell, the decision could prove rewarding.
"Consequently we do expect more farmland to come to market this year – whether it be investors looking to cash out and release capital, farmers feeling the squeeze on incomes or those looking to retire. However, even then, it’s unlikely demand will be satisfied.
"Competition for high-quality commercial farmland remains strong, while environmental motivations also continue to provide a buzz. Tree planting, biodiversity net gain, natural capital, carbon sequestration markets and regenerative farming have all resulted in increased interest from investors who want land with potential to secure income from nature-based solutions."
The data also shows that 21,419 acres of farmland were publicly marketed in the east of England last year – higher than any other region.
Significant deals agreed by Savills last year include the sale of the Exning Estate near Newmarket, the Coldham Estate in Cambridgeshire and the Gawdy Hall Estate near Harleston in Norfolk.
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