Farmland has risen again in value over the first half of this year, though the rate of growth has slowed, according to Estate Agents Strutt & Parker.

The Estate Agent's figures show that average arable land values saw a rise of 2 percent to £8,793 per acre across England in the first half of this year, compared to the same period in 2013. Meanwhile pasture values rose by even more in 2014, with a rise of 9% increasing the average figure for first half of this year to £7,077 per acre.

Strutt and Parker suggested that comparatively low arable returns could play a part in the slow-down in arable land values. In fact, the continued rise shown in early 2014 has been put down to a relatively small amount land fetching very high prices, generally paid by buyers who are purchasing land as a long-term investment and for careful tax planning.

However, the agents did say that less land has gone to investors in 2014 than in previous years. Investors who are still interested in land are generally focussing on large-scale commercial arable holdings or areas of bare arable land, for which a premium still exists.

In England, the average cost of a 1,000 acre unit was £10,742 per acre in the first half of 2014, compared to £8,038 per acre for holdings sized between 500 and 1,000 acres. Holdings between 250 and 499 acres generally sold for an average of £7,854 per acre, while smaller units went for an average of £9,365.

Continuing a trend observed in recent years, less land was put up for sale in 2014. Sales of land were 25% lower in the first half of this year than in 2012.

Sam Holt from the agent's Farms and Estates team commented, "Over the past few years land values have been underpinned by good commodity prices supporting the farmers who have been buying land. Now that these prices have dropped there is naturally less confidence from farming purchasers. However large blocks of land remain attractive to institutional buyers and individuals looking to make use of potential tax advantages which, albeit more cautiously, continue to drive land values upwards."