More than 12,000 acres of farmland have been publicly marketed in the East of England since the start of the year, suggests the latest research.
Average farmland prices have dropped across all land types, according to the most recent half year report from Savills. But significant variation remains depending on location and the quality of buildings and infrastructure.
National picture
In all, 12,263 acres of farmland has been publicly marketed in the East of England since the start of the year – accounting for 17% of all farmland marketed in England to the end of June.
This compares with 14,500 acres marketed over the first six months of 2024 – a decrease of 16%. The drop is broadly in line with the national picture, with 15% less land coming to market across Great Britain compared to the same period last year.
Prime arable land is currently trading at an average of £9,368 an acre in the East of England – a fall of 5.5% from £9,914 an acre at the end of last year. This is a bigger drop than the price nationally which has fallen by 1.2% to £10,100 per acre.
Competition
Grade 3 arable land is is trading at an average of £9,061 per acre in the East of England. Although this is a fall of 2.5% from £9,289 an acre at the end of last year, it is still above the national average of £8,779 an acre, down 0.9% on the end of last year.
Savills associate director Oliver Carr said: “The strength of competition and prices achieved continues to significantly vary depending on location, the quality of land in question and its buildings.
The presence of high-quality infrastructure was playing a bigger role in determining the strength of buyer interest, said Mr Carr. “There are some very well-funded buyers for ‘the right thing’, but they have become increasingly discerning.”
Recent sales
Some recent sales had achieved as much as £13,500 per acre. But other parcels of land had sold for less than £9,000 per acre. Although there was a wide spread, Savills was frequently achieving more than the statistical averages.
“In some areas demand remains strong,” said Mr Carr.
Nationally, arable land is accounting for a much higher proportion of the farmland market. Some 49% of the area acreage offered for sale nationally during the first half of 2025 is arable compared to a 10-year average of 37%.
In total, the arable farms marketed since January cover 41,600 acres, which is the most since 2015; the average for the intervening nine years is 27,800 acres.
Low margins
“Beef and lamb prices are presently high, while cereal prices have fallen by 14% over the past 18 months, and margins for combinable crops are currently low,” said Mr Carr.
Coupled with the sharp reductions in agricultural support payments for 2025 and 2026, this could be prompting arable farmers to evaluate their options, potentially leading to some sales, he suggested.
“Looking ahead, the dry weather has led to an early harvest, and although yields have been affected, early reports suggest they are often exceeding expectations, so sentiment may improve,” said Mr Carr.
“There are also numerous policy changes underway that affect farmers, including the inheritance tax reform legislation, which is expected soon, so that could also influence the amount of farmland launching to market in the coming months.”