THE average price of prime arable land in the North of England has risen to more than £10,000 an acre with the best sometimes going for more than £16,000.

Savills say the 17.5 per cent rise was partly down to a 34 per cent drop in the amount of farmland offered on the open market.

Andrew Black, farm agency director at Savills York, said: "We have definitely witnessed a "two tier" market, with higher prices being paid for the best and lower prices being paid for the rest."

According to Savills, the North of England saw 13,605 acres of farmland publicly marketed to the end of September compared to 20,480 acres in the same period last year.

Northumberland saw the biggest fall - down 73 per cent from 6,793 acres in 2013 to 1,824 acres - while North Yorkshire fell 52 per cent and Cumbria 20 per cent. In contrast

Durham saw a 330 per cent increase - up from 725 acres to 3,118 acres. Lancashire also saw a 30 per cent increase and South Yorkshire 931 (correct) per cent.

Almost half the land marketed in the region was in Durham (23 per cent) and North Yorkshire (19 per cent). The North of England accounted for 16 per cent of all farmland marketed in England.

Mr Black said: "Interestingly in terms of the purchaser profile we have seen the return of the ‘lifestyle’ buyer on the back of the rise in the residential market and also the corporate buyer targeting larger commercial arable acres. The farmer buyer is still very active but has dropped to the 42 per cent mark, perhaps due to more farmers deciding to expand their business by renting than buying."

He said one notable sale was of Greengill and Maidenhill Farms, Penrith. The 580 acres lying within a ring fence included two adjoining farms offered for sale as a whole or in lots at a guide price of £6.85m. As a former dairy holding currently under arable production, the farms offered flexibility and considerable national interest saw more than 30 viewings including a number of dairy farmers seeking to expand. This resulted in its sale as a whole and above the guide price.

Mr Black does not expect any change in supply in the last quarter. "However," he said, "looking to 2015 several factors could come into play that will affect the market. A rise in interest rates and any continued commodity price pressure could result in more farms coming to the market or certainly smaller parcels of off lying land where landowners are taking the opportunity to even out the balance sheet."

Meanwhile Giles Wordsworth, national head of farms and estate agency for Smiths Gore, said the 97,700 acres marketed nationally so far this year was the second lowest on record. Nationally, he said, bare land values average £7,400 per acre, and farms with houses and buildings (equipped land) average £11,000 an acre.