The value of farmland in England remains close to record levels despite speculation about whether there will be changes to the tax regime in the autumn budget.
The average price of arable land sold so far during 2024 is £11,000 per acre, only slightly lower than the £11,200/acre recorded across 2023, new figures show.
Over half of pasture land now sells for £8,000 per acre or more with the average in Q3 2024 being £9,300 per acre.
Supply over the first three-quarters of 2024 is 30% higher than the five-year average and the second highest amount for 10 years.
Demand has been the strongest for cereals and mixed farms, or properties with diverse income streams.
However, there is growing uncertainty about whether there could be changes to the tax regime - including Inheritance Tax and Capital Gains Tax.
This is according to Strutt & Parker’s Farmland Database, which records the sale of all farms, estates and blocks of publicly marketed land in England over 100 acres.
Sam Holt, head of farm agency for the firm said: “Prime farms in locations where there tend to be wealthy buyers continue to sell well and often over the guide price.
“Smaller blocks of bare land can also command very high prices, often being bought by farmers with rollover money who are highly motivated when they see a neighbour has land for sale.
“However, overall, the feeling among agents is that demand has eased since the frenzy of the post-Covid period of 2021/22.
"This means there is a second tier of farms, which can be extremely good quality but in less popular areas, which are taking longer to sell.”
The data shows 86,200 acres launched publicly during the first nine months of the year, which is the second highest amount in 10 years.
Supply is above average in most regions, but is particularly high in the south west of England and the East Midlands.
The number of properties for sale is the highest since 2015 and there have been more larger farms and estates available.
To date, there have been 24 farms of over 500 acres launched and 12 over 1,000 acres, which is higher than usual.
But Mr Holt said there continued to be lots of speculation about whether there would be changes to Inheritance Tax, Capital Gains Tax or stamp duty in the autumn budget.
“However, there has been a concerted effort across almost all sales agreed so far this year, to get transactions exchanged under the current tax regime," he added.
"The general market sentiment is that any adjustments in taxation will potentially be onerous to both buyer and seller.
“The current tax regime has been one of the many attractions of buying UK farmland, and so we look forward to having more clarity about the government’s plans at the end of the month.”
