The RICS/RAU Rural Land Market Survey has shown a sharp increase in the supply of farmland, alongside a moderation in demand across most areas in the UK.
Some 51% of respondents to the survey reported a rise in the supply of commercial farmland and demand falling for the first time since 2008. This has led to a sharp decline in the forecasts for price growth over the next year.
The survey of farmland transactions found that prices fell 2.5% during the first half of the year.
Yields for investment land currently stand at 1.7% and have declined steadily over recent years as investors chased limited stock for its safe-haven investment potential.
