The revival in UK farmland prices gathered pace over the summer, led by demand from professional farmers, and is poised to continue over "the next few years", Savills has said.

"Values have now resumed an upward trend, albeit at a significantly slower rate than recorded during 2007 and early 2008," the land agency said.

Prices, which rose marginally in the first half of the year, jumped by nearly 3% in the July-to-September quarter.

'Like gold' 

The strongest demand was for prime arable land, where values leapt by 5% to just under £5,400 an acre.

However, the market had also received a boost from concerns of a revival in inflation.

"Farmland, along with gold, continues to be viewed as a good long-term investment and a hedge against inflation," the report said.

"The correlation between farmland, gold and oil – the world's principal defensive hedges - remains strong."

Tight market 

The market had received further support from a squeeze in the supply of land for sale. In the east of England, the number of acres marketed slumped by 39%.

"Activity in terms of supply remains very tight," Savills said.

Low levels of turnover would continue to underpin prices, which were set to rise by 4% in 2009 and at a similar pace in coming years.

"We expect the fundamentals of food and fuel production and the finite nature of land to continue supporting values," Savills said.

"If this, as we believe, is combined with the current low levels of turnover, then values are likely to continue rising at a steady rate."