The average price of a piece of farmland rose at the fastest rate since 1977 last year, the latest Knight Frank Farmland Market Review has found.
Increased demand from lifestyle purchasers and foreign investors was at least partially responsible for the rise, the study noted, with roughly 15 per cent of all farmland now purchased by overseas buyers.
Changing trends saw the number of buyers purchasing land for lifestyle reasons rise by 25 per cent in terms of value and 50 per cent in terms of volume.
"Wealth generation in London, and especially in the City, has contributed to significant additional demand and also has underpinned price competition, especially for farmland tied to residential estates to the west of London," commented Clive Hopkins, head of farms and estates at Knight Frank.
"With residential price growth at the top of the London market hitting 40 per cent and above in some prime locations over the past 12 months, substantial equity is available for bidding up the price of country estates," Mr Hopkins added.
Foreign investors are also now accounting for over 40 per cent of all country houses worth at least £5 million in the south-east of the country, separate Knight Frank research revealed last week.
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