English Estates & Farmland Market Review | Summer 2025

The English farmland market experienced a slower start to 2025 compared to 2024, shaped by uncertainty stemming from the proposed changes to inheritance tax (IHT), the closure of the Sustainable Farming Incentive (SFI) scheme and pressure on arable farm incomes. The number of transactions during the first five months of the year was subdued, although activity has now increased as buyers have reached the point where their ambitions to acquire land are based on long-term expectations, rather than short-term market trends.

Market sentiment suggests that supply has noticeably increased. However, our dataset – which includes farms and land parcels in England over 100 acres – shows 46,200 acres were publicly marketed in the first half of 2025. This is 15,000 acres less than the equivalent period in 2024 and below the five-year average. At the same time, demand has eased, leading to higher stock levels than seen for some time. A growing number of farms and estates launched in 2024 remain available. There has also been a rise in properties withdrawn from the market because they have failed to generate interest.

This shift in balance between supply and demand has put some downward pressure on values in some areas. Our analysis shows average arable values fell by 8% to £10,500/acre in the first half of 2025, with pasture prices also reducing, but by less. These averages are based on a relatively small number of transactions, so should be interpreted with some caution. Although there does appear to have been a market correction from the record highs of 2023 and 2024, prices remain historically strong. The proportion of arable land selling for more than £12,000/acre has dropped, but almost 60% is still selling for more than £10,000/acre.