Farmland values in the East of England are outpacing the national average - even as the amount of land for sale in the region ramps up dramatically, separate studies suggest.

Latest figures show that the region's farmland market is in an increasingly favourable state following a generally static few years. A study by land agents Savills reveals the value of all types of farmland in East Anglia reached at average of £8,641 an acre at the end of June - the highest figure for any region of the UK.

Meanwhile, Strutt and Parker figures show that 14,500 acres of land was marketed in the East of England in the first quarter of 2022 - a 69% rise on the five-year average of 8,580 acres. At the same time, Savills said the East of England saw more farmland publicly marketed in the last 12 months than anywhere else in the UK – rising 138% from 6,528 acres on the open market in June 2021 to 15,542 acres on the open market in June 2022.

Land agents Carter Jonas said UK farmers and investors had seen farmland values plateau since values peaked in 2016 - leading to a "very slow" decrease of about 5% over eight years as uncertainties around Brexit and the phasing out of traditional farm subsidies were implemented. However, over the past 30 years, land values have grown by 369% ­– the equivalent of 5.3% per year, it said.

The half year farmland price index from Savills shows average June pasture and arable prices in the region were 2.7% higher than in June 2021. At £8,641 an acre they were some way ahead of the national average of £7,366 an acre.

The Strutt and Parker study showed land marketed in the region was also well ahead of the 5,900 acres in the same period in 2021, and 5,700 acres and 5,600 acres for the same six months in 2020 and 2019 respectively. In 2018, 11,200 acres were marketed over the period.

The value of prime arable land in the East of England rose an average 4.2%, said Savills – rising from £9,113 an acre in June 2021 to £9,495 an acre by the end of June 2022. The south (£9,829 an acre) and south west (£9,611 an acre) topped the list with East Anglia in third spot. Nationally, prime arable land stood at £9,424 an acre - a rise of 2.8% year on year.

Savills said Great Britain as a whole saw 70,700 acres of farmland were marketed during 2022 to the end June, compared with 65,900 acres in 2021 – a 7% rise.

Strutt & Parker’s Farmland Database - which records the details of all farms, estates and blocks of publicly marketed farmland over 100 acres - reveals nearly half of the farms marketed this year are already either under offer or have exchanged - a much greater proportion over the same period in the past five years.

Tight supply and strong demand pushed the average value of arable land in England up by 2% to £9,600/acre – the highest it has been since 2015 - while the average value of pasture land also rose by 6% to £7,900/acre, it said.

William Hargreaves - who leads the rural agency team for Savills in Suffolk and Cambridgeshire - said demand was driven by buyers wanting large, high quality commercial farms and by corporate investors and environmentally-focused buyers seeking land suitable for ecological schemes.

“A key feature of the market so far this year has been the range and scale of property types available, which has come about because a growing number of farmers who were thinking of leaving the industry are now taking advantage of the strong market conditions,” he said.

“There is also a wide spread of potential buyers. Some have no past exposure to the agricultural sector and are attracted by the relatively safe investment opportunities presented by farmland at a time of considerable economic uncertainty.”

Nationally, 21% of farmland advertised during the first half of 2022 was for farms of more than 1,000 acres. The largest - both more than 4,000 acres - are at Coldham in Cambridgeshire and Goole in the East Riding of Yorkshire, said Savills.

“Buyers remain keen to take golden opportunities to acquire additional acres or to relocate to more productive land," said Mr Hargreaves.

“There was evidence of keen investor appetite for large holdings launched to the market earlier this year, suggesting upbeat market sentiment for commercial agriculture notwithstanding the Ukraine crisis and the environmental narrative of recent years.

“Demand for smaller farms is also at unprecedented levels, with a growing pool of buyers frustrated by the lack of opportunities.”

Matthew Sudlow, head of estates and farm agency at Strutt & Parker said his team hadn't seen a farmland market like this for some time.

“Competitive bidding and best-and-final offers are becoming common for top-quality properties in desirable locations. For example, a 500-acre farm on the market recently for £7.25m attracted viewings from 17 interested parties and went under offer, after just five weeks, for more than its guide price, following a call for best-and-final offers,” he said.

Despite the big increase in supply, it was still being outstripped by demand, he added.

“Demand remains robust because of the broad spectrum of buyer types wanting their own slice of the countryside – from farmers with rollover money, to lifestyle buyers and green investors looking to invest in natural capital.”

He added: “We are certainly having a growing number of conversations with farmers with no successor who are currently considering a retirement sale. For those who are already considering a sale, it makes sense to take advantage of the strength of the market, particularly given the backdrop of rising input costs and volatile commodity prices, and the availability of the lump-sum scheme. However, while we expect total supply in 2022 to be up on 2021 levels, in historic terms volumes are likely to remain tight for the rest of the year.”