Demand for farmland in the North West continued to outpace supply in the final six months of 2014.
The average cost of land remaining strong at £8,250 per acre, according to the latest RICS/RAU Rural Land Market Survey H2 2014.
During the final six months of last year, the average cost of arable farmland in the North West dipped to £8,250 per acre from £9,000 during the same time period in 2013.
Meanwhile, the cost of pasture farmland in the region dropped slightly from £8,625 during the last six months of 2013 to £8,250 at the end of last year.
However, despite these slight price decreases, prices for land in the North West are expected to continue to rise over the next 12 months.
The increase in demand from “lifestyle” buyers that began in H2 2013 continued throughout the whole of 2014 with this trend being noticed across most parts of the UK.
According to surveyors in the North West, average arable land rents remained healthy during 2014 at £175 per acre (up from £160 per acre in H2 2013), while average pasture rents maintained at £150 per acre.
RICS North West Rural spokesperson, Graham Bowcock said: Most land tends to be bought by farmers, although this may ease in line with downward pressure in commodity prices. However, non-farming investors and amenity buyers continue to play their part in making the market.”