Farmland in Review

 


Welcome to our Farms Sold report for 2025 which provides a national and regional picture of the farmland market and some examples of property sold.

Exceptionally challenging weather earlier in the year and political/economic headwinds ahead of the November Budget concentrated market activity into mid-2025. Farmland values softened marginally, down 0.6% on average, while the publicly marketed acreage fell to just under 159,400 acres by the end of October—11% less than 2024.

The sector remains resilient, but farmers need to be given confidence and economic stability to commit to long-term plans. Reducing domestic policy volatility and fewer geopolitical pressures would help. England saw the sharpest decline in acreage marketed (down 13%), followed by Scotland (12%), while Wales recorded a 9% increase after an October surge. The East Midlands was the only English region with higher supply, up 22% year-on-year, driven by market activity in the arable land sector.

Whilst less than 2024, supply was still 18% above the five-year average and closer to pre-Brexit norms. There was no annual change in the average property size at 190 acres, but there were 111 fewer listings over 50 acres. Large holdings (1,000+ acres) remain significant, accounting for 20% of marketed land in both 2024 and 2025.

Values varied widely: prime arable land in the East of England fell 5.5%, while pasture held steady. The North saw growth, with prime dairy land up 2.3%, though demand is cooling as milk prices decline. Some farms and estates with a high proportion of value tied up in the residential elements were affected by prime housing market inertia amid fiscal uncertainty and budget-related tax rumours.

Looking ahead, demand for quality land, farms and estates will continue, particularly for food production and alternative uses such as renewables, forestry and amenity. Development-related activity may support values as the Planning and Infrastructure Bill progresses, and the Land Use Framework and Local Nature Recovery Strategies could reignite natural capital interest in 2026. Post Budget, the introduction of an annual tax surcharge for houses worth over £2m, at levels somewhat lower than many will have feared, is probably the least worst outcome for owners of prime property, and should lead to an increase in market activity for more residential and amenity properties.