Average farmland values in England held broadly firm in 2025, with arable land averaging £11,000 an acre despite a year of uncertainty that saw buyers take a more cautious approach.
New analysis from Strutt & Parker shows arable values were 2% lower than in 2024, while pasture land averaged £8,600 an acre, down 4% year on year.
Despite the softening, values remain strong by historical standards. Arable land prices are still 18% higher than five years ago, while pasture values are up 15% over the same period.
Agents said the market has become increasingly selective, with prime, well-located land continuing to attract competition, while other farms and estates are taking longer to sell.
Sam Holt, head of estates and farm agency at Strutt & Parker, said the overall fall in prices was less severe than many had expected.
“Our data – which is based on sold prices for farms or blocks of land bigger than 100 acres – highlights that average values have softened over the past year, but by less than anticipated,” he said.
He said the market strengthened towards the end of the year. “When we ran the figures at the end of September, the drop in values was more significant, but the year ended strongly, which lifted average values,” he said.
Strutt & Parker said its farmland database is updated on a rolling basis using completed sales, helping to reflect actual market conditions rather than asking prices.
However, the firm said farms are taking longer to sell, with uncertainty – including ahead of the Autumn Budget – dampening activity earlier in the year.
As a result, a significant number of transactions were not agreed or exchanged until the final months of 2025.
Mr Holt said headline averages disguise wide regional and sector variation. “While average prices remain high, it is important to note there can be a wide variation in the prices paid across both arable and pasture land,” he said.
“Demand is softer than the 2021/22 peak and so while the best-located farms are still drawing competition and achieving very good prices, other farms and estates are taking longer to find the right buyer.”
He said strong demand continues for the right type of land. “We continue to see some exceptional prices paid for some arable ground – in some instances, we have seen some sizeable blocks of land achieving nearly double the average at over £20,000/acre,” he said.
He added that “almost 70% of arable land is selling for £10,000/acre or more”. By contrast, values have eased slightly in less popular areas, where lotting is increasingly being used to widen buyer interest.
Mr Holt said the strongest demand is typically for strategic land, cereal units and dairy farms, while hill ground has been slower to sell.
Land supply fell compared with 2024, but at 92,000 acres was still 13% above the five-year average.
The second half of the year saw supply tighten further, with some landowners choosing to delay marketing until after the Budget.
As 2026 begins, agents said there are signs of improving confidence, with requests for viewings picking up since the festive period.
The decision to increase inheritance tax relief thresholds from April 2026 to £2.5m per individual has also been welcomed across the rural sector.
“While agriculture still faces significant challenges, the change should help to underpin confidence, alongside lower interest rates,” Mr Holt said.
However, he said the reforms have not yet driven a sharp increase in transactions.
“Our experience suggests the IHT reforms have had less immediate impact on transactions than perhaps some had anticipated,” he said.
Farmers accounted for more than half of all farmland purchases in England during 2025, marking the second consecutive year their share of transactions has increased.
Strutt & Parker said while investor buyers tend to purchase fewer farms, they often acquire more acres by targeting larger holdings.
Looking ahead, Mr Holt said supply is unlikely to surge in the coming months. “While this may result in an increase in land coming to the market in spring 2026, we do not anticipate a significant surge in supply,” he said.
“Our expectation is that the volume of land available will remain consistent with current supply levels.” He added that modest growth remains possible, but conditions will remain selective.
“If this is matched by a continued improvement in buyer confidence, it is possible that average values could edge upwards by around 2–3% over the course of the year,” he said.
