Analysis of Strutt & Parker’s Farmland Database shows the English farmland market experienced a slower start to 2025 compared to 2024, causing average values to slip back from recent record highs.
Average arable values eased by 8% to £10,500/acre in the first half of 2025, with pasture prices seeing a more modest adjustment of 3% to £8,900/acre.
The company cites uncertainty stemming from changes to inheritance tax rules, the closure of the Sustainable Farming Incentive (SFI), and a squeeze on arable incomes has led to downward pressure on prices in some areas.
Sam Holt, head of estates & farm for Strutt & Parker, says: “The experience of our farm agency team is that 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.”
Despite some having a perception that supply is rising, Strutt & Parker’s data shows that 46,200 acres were publicly marketed in the first half of 2025 – a decrease compared to the same period in 2024 and below the five-year average.
In total, 126 farms and estates were launched publicly, compared with 162 in the first half of 2024. Notably, the number of larger farms (over 500 acres) coming to the market has continued to rise, with 22 marketed so far this year.
Mr Holt adds: “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 Some farms launched in 2024 remain available, and a proportion have been withdrawn when they didn’t generate sufficient interest.”
However, there are signs of renewed levels of activity in the market in recent weeks, with more transactions taking place than earlier in the year.
“We have recently agreed the sale of a privately marketed farm within two weeks of it becoming available. Another in the southwest of England went under offer in less than a month. Amenity farms in desirable areas, large commercial holdings with diverse income streams, and the very best Grade 1 land all remain highly sought after.”
Looking ahead, Mr Holt says the market feels resilient given the headwinds facing the agricultural sector and the wider economy.
“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.”
