Prices of prime farmland across the East of England have reached a nine-year high, according to experts.

Land agents at Savills say prime arable land in the region is on the rise - and has now reached its highest point since the end of 2014.

Prime arable land sold in the three months to the end of June this year averaged £10,758 an acre in the East of England - 1.8% up on the previous quarter.

This was higher than the national average of £10,242 an acre – a rise of 8.7 per cent year on year.

It was also 13.3% higher than in the same period last year when the average price of land in the East was £9,495 an acre, said Savills.

The last high point for land prices was 2014 when it got to above £11,000/acre.

Prime arable land remains the most valuable farmland asset - but poorer quality pasture land is also in high demand among buyers looking for environmental opportunities, its research shows.

The average price of all types of farmland in the region – pasture and arable – was £9,890 an acre - the highest in the UK.

Prices were 1.5 per cent higher compared to the end of March this year and 14.1 per cent up on June 2022 when the average price was £8,671 per acre.

Only the North of England recorded a higher average price for prime arable land at £11,272 per acre.

The average price in the South of England for prime arable was £10,605 and £10,351 in the South West during the last quarter, the study found.

Nationally, ‘all types’ of farmland traded at an average of £8,101 an acre in the three months to the end of June – up 10% on last year.

William Hargreaves, who leads the rural agency team for Savills in Suffolk, said: "Well-equipped commercial farms and significant acreages of bare arable land are often being bought in competition by buyers with capital gains rollover funds who have a time sensitive window for investment.

"This demand has helped support values and there have been cases where the prices paid are significantly more than the current averages recorded.

"Driven by buyers looking for environmental solutions and opportunities, values for poorer quality pasture land have also increased."

So far, around 12,053 acres of land has been publicly marketed in the East of England – compared to 21,420 for the whole of 2022.

During the first six months of this year 85,400 acres of farmland were publicly marketed across Great Britain, 16% more than during the same period of 2022.

One of the primary motivators for farm sales in the East was retirement - either where there is no successor or where the next generation does not want to farm, said Mr Hargraves.

Debt was also creeping in as a reason for a sale as interest rates rise.

"Farms and estates with a significant proportion of the value allocated to residential assets are also being more affected by rising interest rates in some cases," said Mr Hargreaves.

"It is now critical for new launches to have the right marketing strategy, possibly including flexible lotting, as well as realistic guide prices.

"That said, best in class properties in the popular locations are still highly sought after and deals have been agreed within a few weeks of launch at prices in excess of the guide price."