The latest RICS rural market survey has found that farmland prices rose in the second half of 2009.

31% more chartered surveyors saw demand for commercial farmland rise rather than fall in the six months to December 2009. This represented a rise of 22% in the previous half year, which RICS says demonstrates a growth of interest in land as an asset class.

RICS also says landowners’ reluctance to sell has pushed supply to exceptionally low levels. The net balance of surveyors reporting falling rather than rising availability of land stands at 40% for commercial land and 43% for residential farmland.

Bare land prices, which are based on the opinions of respondents to the survey, rose by 4% in the six months to December last year and now stands at £12,715 per hectare (up from £12,172). Over the same period, the transaction based measure for land which includes a residential component rose by 7.8% and now stands at £16,381 per hectare (up from £15,199).

RICS spokesperson Sue Steer said: “When prices were rising two years ago it was mainly being fuelled by hobby farmers