Demand for 'lifestyle' farmland in Wales grows

In the UK the cost of farmland rose by 4% in the first half of this year Credit: Joe Giddens/PA Wire/Press Association Images

The cost of farmland in Wales has risen by 19% over the last twelve months, with an average price per acre now of £8,625.

That's higher than anywhere else in the UK, and nearly 7% greater than the national average.

The increase means farmland now costs more than four times what it did when the Royal Institute of Chartered Surveyors (RICS), began recording rural land market data in 1994.

It's thought the price growth has been driven largely by farmers.

The latest data shows that growth in demand for farmland continues to outstrip that of supply and this is pushing up prices and supporting expectations for further increases over the course of the next twelve months.

Demand remains very strong on the commercial side, particularly from farmers keen to expand production onto neighbouring plots.

Significantly however there has been a revival in residential or 'lifestyle' demand, which only began to start growing at the end of 2013 having been more or less flat since 2008. This coincides with the broader turnaround in the UK housing market.

– Joshua Miller, Senior Economist, RICS