The popularity of farmland in England as an investment seems to continue, judging by latest price data.

The price of bare agricultural land in England has risen for the tenth consecutive quarter, reaching a record high of £8,265 per acre (around $13,000 per acre), highlighting the popularity of such a "hard asset" when other more traditional investment categories have sometimes fallen out of favour, according to Knight Frank.

The trend of rising land values continued with the second quarter of the year with a 2.6 per cent increase. Over the past ten years the price of bare commercial agricultural land has nearly trebled, the property agency said in a report.

The performance of the farmland index has performed better than other asset classes such as UK house prices, the FTSE 100 Index of blue-chip equities, and Knight Frank's prime central London index. The only asset class with a better performance, the firm said, is gold.

The English market is becoming increasingly complex in terms of valuing specific blocks of land with price variations growing at both the national and local level, Knight Frank pointed out.

Quality of the land is still a serious consideration for buyers, Knight Frank said, even as potential buyers are becoming more cautious and price sensitive due to the combination of a slight increase in the amount of land for sale and lower agricultural commodity prices.

In the study, Knight Frank predicted that a period of flatter price growth while the market consolidates is likely, although premium prices will still be paid where there is competitive bidding. The firm said that with the variety in prices it is difficult to forecast in which direction the market is heading.

The farmland index produced by Knight Frank is based on the opinions of its expert valuers and negotiators across the country, taking into account the results of actual sales conducted by the firm and its competitors, local market knowledge and client and industry sentiment.

Farmland, particularly as it can enjoy certain tax reliefs, and has benefited also from its perceived safe haven status, has seen an influx of interest from wealthy private investors in recent years in the UK.