Market in Minutes: GB Farmland – Summer 2025

Following last autumn’s announcement of reforms to the inheritance tax reliefs relied upon by farmers and other businesses nationwide, farmers and landowners were eager to understand the impact on the farmland market. However, as the market headed into a seasonal period of reduced activity and the final legislation was still not in place, with lobbying continuing, any impact will take time to emerge.

History shows uncertainty generally leads to a period of reduced market activity. In line with this, we forecasted farmland supply would fall by 20% in 2025, with values remaining stable before modest growth resumes at the end of our 2025–2029 forecast period.

Our analysis of farmland market activity in Great Britain (GB) during the first half of 2025 (H1) shows that the area of farmland marketed is 15% lower than in 2024, while the overall average farmland value has fallen by 1%. Results vary regionally and particularly by farming sector, with the performance of ‘corn’ versus ‘horn’ influencing the types of property brought to market and value trends.

Supply

In the first half of 2025, 99,700 acres of farmland were brought to market publicly in Great Britain – 15% less than in H1 2024, but still 5% above the pre-Brexit levels of 2012–2016. While supply is down relative to last year, the market remains significantly more active than in the period following Brexit and the Covid-19 pandemic. Figure 1 shows farmland supply on a 12-month rolling basis.

The supply in H1 2025 was 17% lower in England and 14% lower in Scotland, compared to H1 2024. In Wales, it was 3% higher, although this is due to the 3,784-acre Nannau Estate in Gwynedd, which Savills is marketing.

Across the English regions, two do not fit the overall trend of reduced supply: the East and West Midlands. In the East Midlands, 14,300 acres have been marketed in H1 2025, 8% more than in H1 2024, which was also an active year for the region. The comparison to the 8,400-acre average for the region between 2012 and 2016 is stark, with 70% more farmland marketed this year in the East Midlands. In the past two years, Lincolnshire alone has surpassed this former regional average. Activity is also notably higher in Nottinghamshire, another East Midlands county, where arable farming predominates. The regional results are primarily due to a higher number of properties launched, rather than larger units. In H1 2025, 55 properties were marketed, compared to an average of 39 between 2012 and 2016. In the West Midlands, Herefordshire, Shropshire, and Staffordshire are each at least 30% more active than they were between 2012 and 2016. However, overall, the region has not exceeded the amount of land marketed in H1 2024.

Availability of arable farms is elevated

Supply by farm type

At present, arable land accounts for a much higher proportion of the market than usual. During H1 2025, 49% of the acreage launched was on farms that are predominantly arable enterprises (Figure 2). By comparison, 41% was on arable farms in H1 2024, and the average for the last ten years is lower still, at 37%. In each period, dairy remains at 4–5% of the market, meaning that livestock and mixed farms currently account for a smaller proportion of the land marketed. In total, the arable farms marketed in H1 2025 cover 41,600 acres, which is the most since 2015 – the average for the intervening nine years is 27,800 acres.

Beef and lamb prices are currently high, while cereal prices have fallen by 14% over the past 18 months, and margins for combinable crops are low. Our analysis shows that inflation-adjusted wheat gross margins have fallen by 59%, and oilseed rape by 25% over the last five years (Figure 3). Coupled with the sharp reductions in delinked payments for 2025 and 2026 in England, this could be prompting arable farmers to evaluate their options, potentially leading to some sales.

Values

At this point, there is no sign that the inheritance tax reforms have had a significant impact on farmland values. We will continue to monitor this as we move into the latter part of the year and get a clearer picture of overall demand and the deals agreed. Presently, the strength of competition and prices achieved varies widely between and within regions. The overall average value of GB agricultural land decreased slightly by 1% during H1 2025, to £8,200 per acre from £8,300 at the end of 2024. Values remained constant in Scotland and Wales. The reduction is attributed to England, where the overall average has fallen by 1.3% (Figure 4).

Within England, the results vary by farm type. Prime arable land values have fallen the most, by an average of 2.75% during H1 2025 to £9,900 per acre. Poorer pasture has fallen in value by 1.4% to an average of £6,100 per acre, which could be a reflection of the weaker support that the uplands have received through England’s Sustainable Farming Incentive (SFI). A reformed SFI is set to launch in 2026, which the Environment Secretary Steve Reed says will focus on water quality and biodiversity. Linkages to the land-use framework are also expected, which could mean more funding for the uplands.

Market comment

England

Sometimes the statistics belie the sense of the market. At the coalface, it certainly feels like there have been more farms and estates for sale this year than last, whereas the stats show there have been 16% fewer properties in England. That sentiment may be influenced by notable private market activity or the fact that a high volume of properties was launched publicly, compressed into a narrower window than usual. The weather and fiscal uncertainty stalled decision-making for some potential sellers in the first few months of the year.

Pricing has become more acutely driven by individual circumstances, principally quality of land, buildings and infrastructure, and location. The presence, or absence, of high-quality infrastructure is playing a more prominent role in determining the strength of buyer interest. There are some very well-funded buyers for ‘the right thing’, but they have become increasingly discerning. Competition for best-in-class or from multiple nearby owners continues to drive some exceptional sale results.

Scotland

The first half of 2025 has seen a more subdued market, with the volume of land brought to market notably down on the same period last year. Smaller farms and bare land have dominated activity, with fewer large commercial units launched. Market sentiment continues to be shaped by a range of factors, including the proposed Land Reform Bill, changes to inheritance tax reliefs, and pressure on farm incomes. While these elements are influencing local supply and demand, their impact on pricing has been modest.

Demand for best-in-class properties remains resilient across all sectors and regions. Like in England, buyers are increasingly selective, focusing on land quality, infrastructure, productivity, and realistic pricing. Although few transactions have been completed, early evidence suggests values are holding steady. Interest is strong in established local hotspots, such as southeast Scotland, where private sales have been driven by progressive farming businesses acquiring additional acres.

For those relocating from outside Scotland, scale remains a key motivator. We are marketing two substantial stock farms in southern Scotland, both of which are attracting encouraging levels of interest from across the UK. However, demand is more muted in remote areas, particularly where diversification opportunities are limited or properties have significant residential components, reflecting broader trends in the housing market.

Wales

The market in 2025 has been far busier than it was in 2024, when we seemed to be at the bottom of the current property cycle. We are receiving more enquiries, confidence has improved, and there is demand for good commercial farms that offer scale and infrastructure. Earlier this spring, we sold a large commercial dairy farm in a fantastic coastal location. There has been a strong response to another dairy farm in West Wales, with buyers from England, Ireland, and Wales viewing. Seller profiles have ranged from farm businesses consolidating by selling outlying units to others retiring with no successors.

Only two properties of over 500 acres have been launched, so it is mostly smaller farms and blocks of farmland coming to the market. These have attracted interest from local buyers, as well as further afield. Values have remained broadly steady, while affordability and finance constraints continue to influence offers.

We have some interesting farms still to come to market this summer with leisure and diversification potential, which should attract interest from both farmers and non-farmer investors alike.

Outlook

The dry weather has led to an early harvest in some areas. Although yields have been affected, reports suggest they are often exceeding expectations, so sentiment may improve. Numerous policy changes are underway that affect farmers across Great Britain, resulting in a constantly evolving business environment.

Farmers in England await news of plans for the reformed SFI, while the Welsh Government has just released its final plans for the Sustainable Farming Scheme. Its ‘universal payment’, which includes £28 per acre on the first 173 acres and a £43 per acre social value payment on the whole farm, means that the baseline funding for all farms will be higher than in England. This is likely to support the viability of smaller and upland farms better, and could affect the types of properties sold. In Scotland, the progress of the Land Reform Bill is being closely watched, as it contains provisions that could see Scottish Ministers involved in the lotting of properties offered for sale. Its new agricultural support framework will not launch until 2027, with Ministers recently signalling a clear commitment to livestock farming and maintaining the national herd.

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