Farmland prices edge down amid market slowdown

Variable values across country

The farmland market in England and Wales continues to drift, with buyers and sellers hesitating amid ongoing political and economic uncertainty.

Average values for bare agricultural land fell by 2.3% during the second quarter of 2025 to £8,861/acre, suggests the latest Knight Frank farmland index – a decline of 5.1% over the past 12 months.

The good news is that prices remain 27% higher than five years ago and more than triple what they were two decades ago.

But the market is lacking momentum, with subdued activity subdued despite these longer-term gains.

No clear trend

“There’s no clear rhyme or reason as to what’s selling and what’s not,” says Will Matthews, Knight Frank head of farms and estates sales.

“Some farms that have been sitting on the market for a while are suddenly attracting strong interest, while others are proving difficult to even get viewings. We’re not seeing clear value trends, and that reflects how few deals are actually being done.”

The slowdown in transactions makes it harder to establish reliable pricing benchmarks and is weighing on market confidence. Despite slightly more land brought forward this year compared to 2024, volumes remain well below pre-Covid norms.

“This year’s uptick is really just a response to how little happened last year,” explains Mr Matthews. “It doesn’t signal any major shift in sentiment among landowners.”

Despite speculation that next year’s changes to inheritance tax would trigger early sales by farm owners and family businesses, Knight Frank reports that activity remains limited.

“We’ve had virtually no calls from owners wanting to sell ahead of the proposed tax reforms. It’s clearly a background concern, and I expect we’ll hear more about it in the months ahead, but it hasn’t yet influenced decision-making in any meaningful way.”

Demand-side factors are also weighing on the market. At the same time, a broader cooling in the prime housing market is having a knock-on effect on interest in equipped farms and residential estates.

The slowdown in new housing development and infrastructure delivery has significantly reduced the pool of rollover buyers – typically motivated landowners looking to reinvest the proceeds of compulsory purchases or land sales.

“The development pipeline has gone quiet, and the top of the housing market is facing its own challenges. As a result, we’re seeing less urgency from the kind of buyers who were once a dominant force in certain parts of the farmland market.”

Strongest demand

By contrast, the strongest demand continues to centre around bare blocks of high-quality arable and pasture land. Conservation-focused buyers, private investors and long-term wealth managers remain active, and are often better organised than in previous years.

“We’re definitely seeing a shift in how environmental buyers approach the market. They’re more prepared, with funding secured and criteria agreed in advance. When the right opportunity appears, they’re in a position to move quickly.”

International interest remains notable, with the team receiving multiple recent enquiries from the US, Asia and the Middle East in recent weeks. Irish buyers also continue to be particularly active.

“There’s still significant global wealth focused on UK rural property. But even at the top end of the market, people are taking their time. With all the geopolitical uncertainty in the world right now, few are in a rush to act.”

Looking ahead

Despite these headwinds, the farmland market remains resilient by historical standards. When deals are struck, values continue to hold up well, particularly where land is well-located, high quality and sensibly priced.

“It’s a difficult market to read, but the fundamentals are still strong.

“We may not see much change until the policy environment becomes clearer, but there’s no indication of a serious collapse. Sellers are generally prepared to wait, and the buyers are still out there.”

The Knight Frank Farmland Index has tracked the value of commercial agricultural land since 1944.

New regional forestry team established

Savills has established a new forestry team – extending the land agent’s coverage across the central region.

The central regional team includes three newly appointed team members, Tom Whitchurch, Matt Berg, and George Taylor, who join Sam Riley, a forestry consultant based in the firm’s Oxford office.

Tom Whitchurch, a forestry manager with more than ten years’ experience within the fsector has spent the last five years managing private estate woodlands in the west of England.

Matt Berg has joined Savills from the firm from Pryor & Rickett Silviculture, where he was forestry manager.

George Taylor joins as an apprentice forestry consultant. He is studying Forestry at the University of Cumbria, having been a forestry contractor for three years with woodland management company Kilmaha.