(Money Avenue) A recent research carried out by Knight Frank suggests that farmland values in England increased by no more than 0.8% in the third quarter of 2010.

At the moment, farmland is priced at £5,816 per acre, marking a 17% annual rise. This is the highest level ever registered by Knight Frank.

Experts at the Knight Frank's Farms and Estates and Valuations office, who took part in the compilation of the Knight Frank Farmland Market Index, are determined that land prices in UK will not fall despite the fact that the growth flattened.

As such, Mr. Shirley, head of rural research, said that "the fact that farmland prices still remain at record highs shows how resilient the market is and we believe that the flattening seen in the past three months is a slowdown rather than the beginning of any significant decline. Prices are likely to start picking up again more quickly after spring 2011."

His opinion is shared by Mr. Hopkins, head of farm and estate sales, who is determined that “in England, the volume of land for sale has actually decreased so far in 2010; this will help prevent farmland values from following other property sectors downwards.”

http://www.moneyavenue.co.uk/news/land/uk-farmland-values-flatten-in-q3-knight-frank-637.html