Farmland prices in England have remained stable during the first quarter of this year due to a reported limited supply and steady demand in the market, according to one property consultancy.
These findings were announced today (Tuesday, April 7) within Strutt & Parker’s analysis of its farmland database, which showed that just over 7,000ac were publicly marketed in the last three months.
The property consultancy reported that this year’s total so far has decreased by 3,300ac in comparison to this time last year, with it being 15% below the five-year average as well.
Speaking about the decline in acres, the firm’s head of estates and farm agency, Sam Holt commented: “The persistent rain during the early part of the year has been one contributing factor, with vendors understandably reluctant to bring property to the market while conditions were so wet.
“More generally there is a sense that some are delaying major decisions pending greater clarity on the impact of the changes to inheritance tax and the wider consequences of the conflict in the Middle East.”
Arable
Despite the “prevailing mood of caution” in the market, Holt stated that this year’s data does not reflect this sentiment as strongly as some might expect.
He said: “There is a nervousness within the arable sector, which has had a challenging three years and is now, once again, facing rising fuel and fertiliser costs.
“Yet despite this volatility, our analysis of the farmland database highlights the market remains relatively robust.
“We also continue to see off-market transactions as sellers seek a more discreet sale.”
Holt noted that some arable land is selling for around £7,500/ac at the lower end of the market, particularly in areas where “farmers have little competition and are bidding mindful of the land’s profit potential.”
He highlighted “local dynamics” as a key driver of the farmland market, which is subsequently making prices “significantly higher.”
According to data from Strutt & Parker, 30% of arable land sold by the property consultancy in 2025 returned £12,000/ac or more, which has reportedly “kept average prices near record levels.”
Looking ahead
While admitting that activity in recent months has been relatively subdued and transactions are tending to progress slowly, Holt outlined that the farmland market still has “opportunities for both buyers and sellers.”
Strutt & Parket stated that it expects prices to continue to vary, “with demand being robust in some localities, but softer elsewhere, and supply consistent with the five-year average.”
Holt said: “Supply is expected to rise in Q2 and Q3 – always the most popular quarters for new launches – but we are not anticipating volumes to increase significantly.
“On the demand side, history points to land often serving as a safe haven for wealth during turbulent times.
“With the conflict in the Middle East causing significant global stock market volatility, it is possible that land may become a more attractive long-term prospect for some investors.”
With farmers accounting for nearly 60% of transactions at Strutt & Parker last year, Holt anticipates farmers to remain cautious when shopping around.
However, he also highlighted that there is still “a good number of active expansionist farmers looking to grow their businesses.”