The Royal Institution of Chartered Surveyors (RICS) is demanding support for UK rural economies, as land prices look set to fall during Brexit negotiations.

They believe that demand for farmland in Great Britain has further decreased, having now been declining for the last 18 months, according to the RAU Rural Land Survey.

Respondents highlighted uncertainty over Brexit and insecurities over future subsidies, as well as low commodity prices as the key factors hindering the market.

Alongside the decline in demand, the amount of land available for sale has also decreased across Great Britain for the first time since 2014, with 19 per cent more respondents noting a decline in availability.

The lack of demand for rural land is impacting prices with the transaction based price index falling for a second consecutive quarter.

The slowing of the market is also predicted to lead to a further decline in prices over the next 12 months.

17 per cent more respondents expect prices for land with a residential component to fall rather than rise, and the price outlook is even weaker for commercial farmland, with a net balance of 31 per cent of respondents expecting values to decline over the next twelve months.

RICS today lays out the priority areas for rural surveyors and land agents ahead of the EU negotiations, and the huge role that farming and land management will have in a post-Brexit economy.

RICS are calling for the Government to guarantee funding, enhance funding for UK applied research and agri-tech development and for the Government to rural proof national policies.

Jeremy Blackburn, RICS head of policy, said: "Our survey shows that demand is continuing to slow for land, with very localised markets playing a key role, at the same time lower commodity prices and higher costs are biting.

"Brexit is then an overarching sense of uncertainty.

"Government’s guarantee of payments out til 2020 gives land based businesses certainty, but also gives the sector the chance to work with Ministers to craft this new system.

"Government need to modernise the systems of land classification/capability for agriculture and review permitted development rights to enable more conservation-related activities reflecting the ever increasing demands on UK land for a myriad of uses.”

Gerard Smith, chairman of the RICS rural board, said:

“It’s clear we are now in uncertain times and beginning to evidence the impact on land values.

"Coupled with continued declining agricultural profitability, the uncertainty caused by Brexit, and concerns regarding levels of agricultural support post 2020, greater caution is being exercised by both buyers and sellers.

"This is combined with a stronger divergence between land values based on quality and location.

"Demand, supply and average land values have fallen and price predictions going forward suggest further declines.

"However, as always, the right land in the right place should sell.”