The high tide of land prices, from March to June this year, is showing signs of ebbing, according to one land agent operating in Shropshire, bordering counties and Wales.

With a number of farms and large parcels of land, exchanging on behalf of vendors and purchasers during the past six months, Jonathan Lovegrove-Fielden, of Balfours, says the land market is edging back.

“The spring and early summer saw a very bullish market with land fetching £6,000 to £7,000 and sometimes £8,000 per acre. However, since then sales have not been so easy – the froth is coming off the market, bringing arable land prices back to £5,000 to £6,000.”

Mr Lovegrove-Fielden cites some recent sales which have fallen through before completion, and which have quietly come back on to the market.

“Certainly our experience is that land in larger blocks can be purchased 10% below the previous guide price.”

Mr Lovegrove-Fielden attributes this to three factors: Those who wanted to buy have already done so in the spring.

The price of cereal crops has fallen, while costs have risen, which is reducing profit and making people less inclined to bid regardless, coupled with the frustration being experienced with the weather this autumn.

The general uncertainty of the economic downturn is making people wary and, in particular, cautious about increasing any debt.

He adds: “Of course there are exceptions where two neighbours or special interest bidders lock horns to compete. Also on smaller pockets of ground, under 100 acres, where bidding can be amenity, rather than agriculturally, driven.

“I think the moral to be drawn from the Midlands and Mid Wales land market this September is that if you are selling kick on quickly.

“There are foreign buyers still around and with the sterling declining they may well help to prop our prices up more than previously,” he added