DEMAND for farmland in the North West continued to outpace supply in the final six months of 2014, although during the period the average cost of arable farmland fell from £9,000 per acre to £8,250, according to the latest RICS/RAU Rural Land Market Survey.

Pasture farmland in the region dropped slightly from £8,625 per acre during the last six months of 2013 to £8,250 at the end of 2014.

The report said the pace of demand – particularly for smaller areas of land - would see upward pressure on prices over the next 12 months.