Farmland prices in Scotland fell slightly during the second half of 2012, says the latest RICS Rural Land Market Survey, H2 2012.

The average price per acre for farmland in Scotland decreased to £3,750 during the second half of 2012 (from £3,906 during the first half of the year), despite prices across areas of England and Wales reaching record highs once again.

Demand for commercial land remained high in the second half of last year as 43% more Scottish surveyors reported rises rather than falls in interest from potential purchasers.

This continued demand was met with a rise in availability. A net balance of 29% of respondents reported an increase in supply of commercial farmland. Availability of residential farmland also saw interest rise by the same amount.

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"The demand for agricultural land has continued strongly in the second half of 2012. While it is encouraging to see suggestions that prices will pick up, this has yet to manifest with prices marginally decreasing. That said, good sized blocks of quality commercial farmland continue to attract healthy bids and high levels of interest," said Sarah Speirs, RICS Scotland Director.

Looking ahead, a net balance of 71% of Scottish surveyors expect prices of commercial land to increase over the next twelve months.

"The farm market across Scotland was mixed in 2012 with location and quality being major drivers and resulting in quite different outcomes for similar farms in different locations. Demand for bare land remains strong with farmers looking to add acres and not buildings to their existing holdings," commented Mark Mitchell FRICS, Bell Ingram Limited, Perth.

(GK)