The RICS survey, conducted in collaboration with the Royal Agricultural University, found that 49% of respondents expected the prices to fall across all farmland, a net balance of 42% expected a fall in the price of mixed-residential farmland, and a net balance of 19% reported a fall rather than a rise in residential farmland. 

Commercial farmland suffered the worst contraction (net balance of -48%).

According to the survey’s transaction-based measure, the average farmland price fell to £10,750 per acre.

Jeff Matsu, RICS senior economist, said: “Commodity price volatility was already negatively impacting sentiment in the rural land market prior to the EU referendum, and the outcome of the vote has added further uncertainty.

“For now, this appears to be weighing heavily on demand and prices have begun to slide.

“Nevertheless, going forward, at least some encouragement can be taken from the potential for the Bank of England’s monetary policy stimulus to support activity.

“In addition, the fall in sterling should prove beneficial to agricultural exporters and farmlands’ safe haven status may attract long-term investors, particularly for prime holdings.”