Agricultural land prices in Britain have risen by 58% in the past 10 years, according to a Bank of Scotland survey.

Prices averaged £2290/acre in 1995 and stood at £3630/acre in 2005.

At the two extremes, Wales delivered the fastest rise, at 92%, while the East Midlands recorded an increase of just 16%.

The average value of the land on a farm in Britain in 2005 was £575,735. North-east England led the way at just over £794,200, followed by Scotland at £766,700.

John Taylor, director of agriculture at Bank of Scotland Corporate, said the increase reflected a healthy demand for farming land from both inside and outside the agricultural sector.

“One particular trend is the amount of lifestyle money flowing into the rural economy,” he added.

“In addition, the expansion by profitable farms rolling over funds to increase land holding on their own farms is driving up prices.”