Scottish farmland tops £15,000 an acre despite reform uncertainty

Scottish farmland is still commanding five-figure prices despite a year dominated by land reform proposals and tax uncertainty, with prime arable ground reaching up to £15,000 an acre.

Strutt & Parker’s annual review shows values held firm through 2025, even as political “noise and external pressures” weighed on sentiment.

Douglas Orr, farm agent for Strutt & Parker in Scotland, said: “2025 was a year that will stick in the mind for some time, due to the noise and external pressures which created a sense of uncertainty in the market.”

The Land Reform Bill — which would give ministers powers to intervene in land sales over 1,000 hectares (2,470 acres) — alongside proposed inheritance tax changes, both influenced confidence.

Mr Orr said tax reform in particular prompted some restructuring. “The latter was a driver for several sales, as businesses looked to restructure and sell off outlying assets.”

However, constrained supply and steady demand underpinned pricing.

“Overall farmland values held firm, supported by steady demand and reduced levels of supply,” he said.

Just 28,000 acres were publicly marketed in 2025 — fewer than in 2024 and below the five-year average.

Supply fell across all regions except the Lothians and West Scotland, with the sharpest drop recorded in the North East.

Of the 82 farms marketed, 84% were under 500 acres, although there was a modest rise in larger units coming forward.

Only one block of hill ground exceeded the 2,470-acre threshold outlined in the Land Reform Bill, limiting exposure to potential ministerial intervention.

Prime arable land in East Lothian, Fife and Angus remained the standout performer.

Prices consistently exceeded £10,000 an acre, with up to £15,000 an acre achieved for well-equipped farms offering scale, quality soils and strong infrastructure.

By contrast, the hill ground market proved more variable.

Reduced demand from forestry funds and natural capital investors cooled competition, although Mr Orr noted this created “opportunities for farmer buyers”.

Demand overall remained firm across all farm sizes and price brackets.

While bidding was less intense than during the peak years of three seasons ago, 88% of farms marketed in the first half of 2025 were either under offer or had missives concluded by 31 December.

That compares with 76% the previous year and aligns with the strongest-performing years of the past decade.

Farmers continue to be the most active buyer group, often seeking to expand neighbouring holdings or restructure to improve efficiency and long-term resilience.

For sellers, restricted supply continues to support values.

For working farmers, softer investor demand in certain sectors — particularly hill ground — may present selective buying opportunities.

Looking ahead to 2026, Mr Orr said early signs point to similar activity levels, although policy uncertainty has not disappeared.

“Provided we see no significant economic or policy shocks, values are expected to remain firm, with well-located and productive farms continuing to attract serious interest,” he said.

He added: “In a year shaped by change, Scotland’s farmland market has once again demonstrated its resilience and remains a good long-term opportunity for landowners, farmers and investors.”

Strutt & Parker’s analysis covers farms and blocks of farmland over 100 acres, with a separate Scottish Estates Market Review due shortly.