LAND values increased by 16 per cent last year as the number of acres for sale fell, latest data reveals.

Last year the volume of land marketed publicly in Britain was down 11 per cent on the previous year - 128,500 acres advertised compared with 143,000 in 2003.

But in England market activity was up by about 10 per cent on 2003 levels with 97,000 acres publicly marketed with just under half the total was located in the South West and South East.

"The volume figures for England last year are slightly distorted by the marketing of a number of substantial estates," said Savills head of farm sales in the South West David Cross.

"The acreage tied up in farms - as opposed to the traditional estate - was less than 2003 with some regions seeing very little activity at all.

"Undoubtedly many farmers, who might have considered selling, chose to sit tight and adopted the wait and see approach - despite improved clarity on the Single Farm Payment scheme."

The growth in values in England was across all types of farmland but the most significant was for poor quality pasture land which increased in value by almost 30 per cent.

Buyers of this land type tended to be the lifestyle buyers keen to acquire a buffer zone around their property.

"Demand for any residential farms in the right location and sensibly priced was good.

"Often bare land values for the acres closest to the house far exceeded the average agricultural value of between £2,500 and £3.000 per acre."