Despite the challenges facing agriculture and the broader economy over the past 12 months, farms and estates generally continue to hold their appeal, suggest agents Strutt & Parker.
Its Farmland Database shows the price of arable farmland in England averaged £11,000/acre in 2025, which is 2% lower than in 2024.
The price of pasture land averaged £8,600/acre, which is 4% down on the previous year.
However, these prices remain strong by historical standards, with arable values 18% higher than five years ago and pasture values 15% higher (see table at end for further details).
Sam Holt, head of estates & farm agency for Strutt & Parker, says: “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.
“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.”
To give the most accurate picture of actual market conditions possible, Strutt & Parker’s database is updated on a rolling basis using sold prices.
Given it is taking longer for farms to sell than it used to – with uncertainty also dampening activity ahead of the Autumn Budget – a significant number of deals did not go under offer or exchange until late in the year.
Sam says: “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. 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.
“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 – and almost 70% of arable land is selling for £10,000/acre or more.
“However, in some less popular areas we have seen prices fall back slightly and here lotting is proving important to engage the widest possible pool of buyers. While there will always be exceptions to the rule, we are typically seeing strongest demand for strategic land, cereal and dairy farms, with hill ground slower to sell.”
Supply was down on 2024 levels, but at 92,000 acres was 13% ahead of the five-year average.
The decision to increase the inheritance tax relief thresholds available from April 2026 to £2.5m per individual has been widely welcomed across the rural sector and the company says requests for viewings do seem to be picking up since the festive period.
“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. Our expectation is that the volume of land available will remain consistent with current supply levels. 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 notes.
