The farmland market in England and Wales has remained resilient despite ongoing political and financial challenges, new research has found.
While the industry faces broader difficulties and policy uncertainties, land values have stayed relatively stable, according to the latest Knight Frank Farmland Index.
The index, which tracks the average price of bare agricultural land (arable and pasture), shows a slight decline of 1% in the first quarter of 2025, bringing the average price to £9,072 per acre.
This follows a similar drop in the final quarter of 2024, resulting in an annual change of -1.9%.
“While farmer protests and policy reform have dominated headlines, the farmland market itself has experienced a fairly uneventful start to the year,” says Will Matthews, of the property consultancy Knight Frank.
“Values have remained steady, and relatively few new properties have been put up for sale so far in 2025.”
In the first quarter of 2025, just over 8,000 acres were publicly launched—an 11% decrease from the same period last year.
Although concerns persist about the potential impact of the proposed inheritance tax (IHT) reform, scheduled to take effect in April 2026, Mr Matthews notes that the market has not yet seen significant shifts in supply or price.
“Prospective buyers seem relatively sanguine about the reforms, and we completed a number of successful transactions in March,” he explains.
“Farmland continues to trade at near-record prices, and while deals may have proceeded regardless, the arrival of spring sunshine has certainly lifted spirits and helped bring renewed momentum to the market."
A large tract of land in the Midlands, for instance, sold for about £13,000 per acre to a progressive farming business, with many other sales exceeding £10,000 per acre.
Mr Matthews also highlights more immediate concerns, such as the significant reductions farmers will face in their Basic Payment Scheme (BPS) payments and uncertainties about the future of government environmental payment schemes.
The recent closure of the Sustainable Farming Incentive (SFI) without prior notice has left many producers in limbo.
"Again, however, it is too early to say if this will result in more landowners deciding to call it a day and put all or part of their holdings up for sale,” he says.
Even if more land does come to the market, Mr Matthews emphasises that demand remains strong.
“Forward-looking farmers, in particular those with diversified income streams, investors and environmental buyers continue to drive interest.
"For now, the farmland market appears to be holding firm," he concludes.
