Farmland values across England and Wales have fallen by over 10% during the past 12 months, dropping back to 2012 levels, reports Carter Jonas the national property consultancy.

Average arable land values are now recorded at £8,967 per acre and values remained the highest in southern and central England.

Demand for good quality, correctly priced land remains robust across the UK and is apparent in the south west regions, where strong prices are achieved where there is potential for diversification.

David Hebditch, rural partner of Carter Jonas – South West said: “The SW market is very location specific, with the success of the sale and price achieved extremely dependent on the buying capability of the local and neighbouring farmers and estates.

“Where there are factors that may be attractive to lifestyle buyers, stronger prices may be achieved to reflect the additional opportunities that are available, whether sporting or amenity.

“In South Gloucestershire and Wiltshire in particular, we have been surprised at the resilience of the land market, where prices achieved are mirroring those of the Southern regions.

“The continuing flow of roll-over money into development land will continue to affect values.”

By contrast, land values are under the greatest downward pressures in the Midlands, where average prices fell by 11.1% to £8,000 per acre in the last quarter.

Banks are continuing to support the rural sector overall, however six months on from the start of the official Brexit negotiations, lenders are displaying more caution when considering proposals. It remains to be seen whether this encourages innovation and revised strategies, or whether more stringent lending procedures result in the demise of underperforming farming businesses.

Tim Jones, head of rural at Carter Jonas, said; “While the third quarter of 2017 has not seen a huge shift in land values and commodity prices, it is clear that ongoing economic uncertainty has affected the state of the market over the last twelve months.

“Following the environment secretary’s recent announcement on farming support, we would urge the government to assess businesses in relation to their wider public benefit and potential output, rather than their size, in order to safeguard the agricultural sector – particularly as we move forward with the Brexit negotiations.”