Our analysis at the end of Q1 revealed 28% fewer acres of farmland had been marketed across Great Britain compared to the same point last year. However, in April, 22,300 acres were marketed, increasing the year-to-date total to 40,200 acres. This year's supply overall is on a par with 2024; higher than the acreages in the years between 2017 and 2023; and 9% above the average for 2012-2016, which we consider a period of normal market behaviour before Brexit, Covid, and the war in Ukraine.
After a slow start to the year, farmland market activity increased significantly in April, the busiest since 2016.
Farmers are reviewing their options
The amount of land marketed has been rebuilding since 2020, when the agricultural transition in England began progressively phasing out direct farm support payments. More farmers and landowners have been reviewing their options, as demonstrated by an increase in the number of farm machinery dispersal sales held (Figure 1). Some of these machinery sales are linked to changes in farming policies, or retirements, and in some cases, they lead to farmland sales.
We expected farmland supply levels would decrease this year as farmers and landowners reviewed their options following the announcement of the inheritance tax reform. The machinery dispersal sales data also suggests that, compared to 2023, fewer farmers have retired or changed the focus of their businesses over the last 18 months.
Although the available acreage is similar to last year, 37 fewer farms have been marketed. On average, the farms are larger, with 9% of the properties exceeding 500 acres in size, compared to 5% in the previous year. These, in turn, are responsible for 40% of the acreage on the market, compared to 28% last year (Figure 2). Most of the larger properties are commercial farms rather than estates and are being sold by farming families and institutional investors.
National farmland supply and values
At a national level, the supply of farmland in Scotland is down 7% compared to 2024 and 20% against the 2012-2016 average. Meanwhile, in Wales, it is much higher at 53%, due to a large estate launch. As the largest country, the overall story for the English market mirrors Great Britain, but there are regional differences. Relative to last year, supply is down 24% in the South East and 44% in the South West, while in the North it is 43% higher. Value growth was strongest in the South last year, so the limited supply could mean this trend continues in parts of the region this year.
Overall, farmland values have levelled off, as anticipated at the end of last year, due to various factors affecting confidence, including the changes to inheritance tax relief. During Q1 2025, values remained constant in Scotland and Wales, while the average land value was marginally down by 0.3% in England. This year, additional complexity has arisen due to the closure of the Sustainable Farming Incentive to new applicants in England, alongside economic instability resulting from President Trump's tariffs. At the same time, the Office for Budget Responsibility expects the government’s planning reforms to deliver an economic boost, which is likely to be positive for farmland values.
Several recent high-profile transactions have highlighted the sector's ongoing appeal to long-term investors. It will be late spring and summer before we can truly gauge the farmland supply and demand levels in 2025 and whether national and global policy changes have impacted the market.
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