Farmland values in England have dipped, but the market remains surprisingly resilient amid tax reform fears and economic pressure.
New figures from Strutt & Parker’s Farmland Database reveal that average arable land values fell by 8% to £10,500 per acre in the first half of the year.
Pasture land experienced a smaller decline of 3%, with values settling at £8,900 per acre, according to the firm.
The drop comes amid ongoing uncertainty linked to proposed inheritance tax (IHT) reforms, the closure of the Sustainable Farming Incentive (SFI) scheme, and mounting financial pressure on arable operations.
Sam Holt, head of farm agency at Strutt & Parker, said: “While some farmland continues to sell at high prices, it can be harder to find buyers for other land and when it sells, it is achieving slightly lower sale prices. That said, almost 60% of arable land is still selling for over £10,000/acre.”
While there is a widespread perception that more land is entering the market, Strutt & Parker’s analysis suggests otherwise.
In the first six months of 2025, 46,200 acres were publicly marketed—down from the same period last year and below the five-year average.
A total of 126 farms and estates were launched publicly, compared with 162 in the first half of 2024.
However, the number of larger farms (over 500 acres) coming to market has continued to grow, with 22 such properties listed so far this year.
Mr Holt added: “There’s a perception that supply is rising, but this is in part because we’re seeing higher stock levels than in recent years.
"Some farms launched in 2024 remain available, and a proportion have been withdrawn when they didn’t generate sufficient interest.”
Despite the sluggish start to the year, the market has shown signs of renewed activity in recent weeks, according to the analysis.
Mr Holt pointed to a number of deals progressing rapidly, including a privately marketed farm that sold within two weeks of becoming available, and another in the South West that went under offer in less than a month.
Amenity farms in sought-after locations, top-quality Grade 1 land, and large commercial holdings with diversified income streams remain especially popular with buyers.
Looking ahead, Mr Holt believes the market continues to offer opportunities: “Overall, we see a market that is adjusting after a period of sustained growth, but one that still offers good potential for both sellers and buyers.
"Vendors who take a strategic approach to pricing and presentation are achieving good results, although in less popular areas, or if a property has certain drawbacks, they should be prepared for a longer sales process.
"For buyers looking at farmland as a resilient long-term investment, there are some excellent opportunities on offer.”
