Farmland values in the east of England have continued to rise – but the latest research suggests the recent rapid growth may be starting to slow.

Quarterly analysis from rural property agents Savills shows the region's prime arable land is now trading at an average of £10,404 per acre – up 3pc compared to the end of September 2022 but down 3.5pc compared to the end of June this year.

The value of all land types – including all grades of arable and pasture land – sits at an average of £9,605 an acre. This is 5pc higher than the same time last year, but a drop of 3pc in the last three months.

Christopher Miles, who leads the rural agency team for Savills in the east of England and is based in the firm’s Norwich office, said a number of factors were affecting values and demand, as the amount of land available for sale starts to increase.

"Farmland values in the east of England are 17pc above 2020 levels and also remain higher than the national average, with values of prime arable and grade three pasture now around £10,200 and £7,000 per acre respectively across Great Britain,” he said.

"This has largely been driven by continued pent-up demand from buyers motivated by business asset rollover relief, and 'natural capital' investors which have so far insulated the market from wider economic factors and sustained overall value growth.

"There is a lot of variation depending on location, land grade and farm type. However prices are generally still up on last year.

"Levels of supply have also started to increase, with more opportunities to purchase larger-scale commercial farms this year, while at the other end of the scale, higher interest rates have triggered some smaller-scale sales to raise capital."

According to the Savills survey, a total of 16,500 acres of farmland have been publicly marketed in the east of England so far this year, including 5,768 acres in Norfolk and 4,518 acres in Suffolk.