Average farmland values are softening ahead of the autumn Budget – although exceptional prices are still being paid for some parcels of land.
Market conditions are proving highly variable, according to the latest analysis of Strutt & Parker’s Farmland Database. Even within the same county, land values are ranging from £7,000 to £17,000/acre for comparable quality arable land.
Arable land prices averaged £10,400/acre in the first nine months of the year – 8% down on the average for all of 2024 (£11,300/acre). Pasture averaged £8,500/acre, about 7% down on 2024 levels (£9,100/acre).
“It’s proving to be a market of contrasts,” said Sam Holt, head of estates and farm agency at Strutt & Parker. “Some farms are attracting strong competition, while others are finding it hard to find a buyer because of a wide range of variables.”
Arable market
Average arable values have dropped because of an increase in the amount of land selling in the £8,000-10,000/acre band and a contraction in the amount selling for more than £12,000/acre.
“Despite this softening, values do remain high by historic standards. If we look back at the five years to 2020, only about 30% of arable land sold each year achieved more than £10,000/acre. In 2025, that figure still remains close to 60%.”
A perception remains that a large amount of land has been brought to the open market this year. But Mr Holt says the data tells a slightly different story.
Some 83,000 acres were publicly marketed in the first three quarters of the year – slightly ahead of the five-year average, but down just over 10% on the same period in 2024. That represented a fall from 255 to 225 in the number of farms marketed.
Looking ahead
“Despite surveys showing farmer confidence is low, we have not seen this result in an increase in supply of farms to the market and we anticipate the rest of the year will be quiet in terms of new launches.
“As is typical in times of uncertainty, many landowners are taking a ‘wait and see’ approach.
“We know of several vendors who were preparing to sell this autumn but have delayed until early 2026, preferring to first find out what the Autumn Budget may bring. The government appears to have a range of revenue-generating ideas on the table but there is no clarity yet on which, if any, will be put forward and people do want more certainty.”
Based on farmland parcels over 100 acres, the data suggests demand has eased from its 2021/22 peak. A greater proportion of farms launched in 2024 remain unsold or have been withdrawn, with sales taking longer.