The four acres, divided into two enclosures, and with two separate ranges offering a fodder store, two stables and a wooden building providing two extra stables at Llanelian were auctioned by agent Jones Peckover at Brookhouse Mill, Denbigh.

Despite the credit crunch and general economic gloom, the agent sold all five lots on offer last week.

A smallholding, Cefn Berian Ucha at Llannefydd, extending in all to 2.32 acres, made £280,000, and 12 acres of accommodation land at Cefn, St Asaph, sold for £40,000.

A three-bedroomed cottage, Tan Y Fron at Llanasa, Holywell, made £151,000, while the former scout hut and yard in Denbigh's Middle Lane was sold for £120,000.

"It was a very good sale with a really excellent turnout," said a spokesman for Jones Peckover of Denbigh.

Pasture and arable land is currently peaking at £8,000 an acre in parts of Britain, with prime arable worth on average over £6,000 an acre in England and pasture worth over £5,300 an acre on average, according to agent Knight Frank.

Andrew Shirley, head of rural land research at Knight Frank, said: "It is already well known that land values are increasing, but new county-by-county figures show where the regional hotspots are and some of the results are quite surprising.

"Across the country, prime arable values, driven by increasing food and oil prices, are routinely topping £6,000 per acre, but the highest values are in the south-west of England - an area known more for its livestock than crop production."

There were small, sought-after pockets of excellent land used for high-value crops such as early potatoes, he said.

However some of the most expensive grassland, which may impact on prices in North Wales, is in Cheshire.

"The most expensive grassland is to be found ... in Cheshire and Berkshire, where the best pasture is making £8,000 per acre," he said.

Cheshire boasts some of the best growing conditions for grass and is prime dairy-farming country, he said.

Demand for all types of land was still extremely strong, he said.
"Despite the credit crunch that is affecting other property sectors, agricultural land is still in demand from a wide variety of buyers.

There are a number of funds in the market prepared to pay premium prices for the few parcels of land they are able to buy.

"The big question is how long can this trend continue? My feeling is that prices will continue rising but we have already seen the strongest period of growth.

"However, farmland certainly isn't a bubble waiting to burst and in these uncertain financial times is still likely to appeal to investors looking for a safe home for their funds and farmers wanting to expand their acreages."