Low supply keeps farmland prices stable despite market uncertainty

Farmland prices have held firm despite a cautious market, as limited supply continues to prop up values.

Just over 7,000 acres were marketed in England during the first quarter of 2026 — 3,300 fewer than a year earlier and around 15% below the five-year average — helping to keep prices stable.

Analysis from Strutt & Parker shows land coming to market has fallen sharply, even as uncertainty weighs on sentiment across the sector.

Sam Holt, head of estates and farm agency at Strutt & Parker, said wet weather at the start of the year had discouraged vendors from selling, while wider uncertainty was also delaying decisions.

“The persistent rain during the early part of the year has been one contributing factor,” he said, adding that some are waiting for “greater clarity on the impact of the changes to inheritance tax and the wider consequences of the conflict in the Middle East.”

Despite this cautious mood, the data shows the market remains resilient.

“There is a nervousness within the arable sector, which has had a challenging three years and is now, once again, facing rising fuel and fertiliser costs,” Mr Holt said.

“Yet despite this volatility, our analysis… highlights the market remains relatively robust.”

He said off-market deals continue, with some sellers opting for more discreet transactions. In one recent case, a 1,800-acre arable farm was sold privately just two weeks after an offer was accepted.

At the lower end of the market, some arable land is selling for around £7,500 per acre, particularly in areas with limited competition.

But in stronger markets, prices are significantly higher — with data from 2025 showing that 30% of arable land achieved £12,000 per acre or more, keeping average values close to record levels.

Overall, activity has been subdued and transactions are progressing slowly, but the market is described as stable, with opportunities for both buyers and sellers.

Looking ahead, Mr Holt expects similar conditions to continue through the year.

Supply is expected to rise in Q2 and Q3 — traditionally the busiest periods for new listings — though volumes are unlikely to increase significantly.

Demand is likely to remain mixed, with stronger interest in some areas and softer conditions elsewhere.

He suggested farmland could become more attractive during periods of economic uncertainty, as it is often seen as a long-term “safe haven for wealth”.

However, farmers — who accounted for nearly 60% of purchases last year — are expected to remain cautious, even as some continue to expand.

Selling strategy will also be key to achieving strong results.

Louise Harrison, head of Strutt & Parker’s national estates and farm agency team, said structuring sales carefully can help maximise value in the current market.

“We are seeing… some buyers can be reluctant to take on properties with extensive residential portfolios,” she said, pointing to high maintenance costs and the introduction of the Renters’ Rights Act.

She added that “thoughtful lotting is as important for premium estate sales as it is for the commercial farmland market”.

Identifying the right mix of buyers — whether neighbours or those seeking specific asset types — can help maximise sale prices, though some vendors still prefer to sell estates as a whole.