The price of farmland in Wales has reached record levels.
The Royal Institute of Chartered Surveyors rural market survey showed prices surging at the fastest pace during the first half of 2008 since the survey began in 1995.
But the number of lifestyle buyers seeking a rural retreat with a few acres for horses or a Good Life bid for self-sufficiency has dropped as the credit crunch begins to bite.
The farmland market leapt forward, with the average price in Wales rising by 33% compared to one year ago. It follows an increase of 21% during the last six months of 2007.
Arable land in Wales now fetches an average of £13,591 per hectare, with pasture land at £12,356. This compares with average UK prices of £14,453 for arable land – up 32% – and £11,477 for pasture – a rise of 16%.
Cathy McLean, director of RICS Wales, said: "Ever rising commodity prices have pushed the price of farmland to record highs as farmers and investors compete for arable land.
"However, the days of the lifestyle buyer are on the wane. The credit crunch is putting an end to city expansion into the country as the precarious financial situation has made City slickers re-think their lifestyle priorities."
