The farmland market in England remains active, with early indications suggesting the prices achieved in the first quarter of 2025 are broadly in line with late 2024.

Sam Holt, Head of Estates & Farm Agency for Strutt & Parker, says: "There has been a slight shift in the market, with sentiment inevitably being influenced by factors such as the inheritance tax changes, pause in the Sustainable Farming Incentive and pressure on farming incomes.

"However, while this is having some influence on supply and demand, the impact is not dramatic and prices have been holding firm." 

Mr Holt said buyers remain active, but are becoming more selective. Location remains key, with demand also stronger for commercial farms with high quality soils. The market is slower in more remote areas with few diversification opportunities and for farms with a large residential element, which reflects broader trends in the housing market.

"The most sought-after assets currently are high-quality Grade 1 land and farms or estates which can generate additional revenue streams without requiring significant upfront investment," he says, "In contrast, properties with large residential portfolios or redundant buildings requiring conversion are facing more scrutiny due to high building costs and policy changes such as the Renters' Rights Bill."

Analysis of Strutt & Parker's Farmland Database shows that only 24 farms were publicly marketed in Q1 2025, compared with 32 in Q1 2024. However, a handful of these were larger farms which means a total of 9,600 acres was marketed in the first three months of the year - 20% above the five-year average.

"Most sales are driven by the same reasons as in previous years, though current challenges may be accelerating some people's decisions to sell."

With relatively few transactions completed so far, it is too early to report average prices for Q1 2025. However, early indications suggest values are broadly in line with late last year. The average price for 2024 stood at £11,300/acre for arable land and £9,100/acre for pasture, but within a wide range, as has been the case for some time. Data collected so far for 2025 points to arable land selling in the range of £8,300 to £13,500/acre, with pasture land between £5,000 and £9,400/acre.

Mr Holt says he expects supply to continue to rise in Q2 and Q3, although not enough to significantly alter the balance between supply and demand

"While buyers are becoming more selective, there remains an appreciation of land as a tangible asset – a sentiment that could strengthen further amid ongoing economic turbulence and uncertainty around global tariffs. Also, despite the increase in supply, farmland remains a scarce commodity and many buyers recognise that a local opportunity may be a once-in-a-generation chance to expand their farming business to improve economies of scale.

"However, given the headwinds currently facing the rural sector there could be even greater variability in values as we move through 2025. High prices will continue to be achievable for the right farm in the right place, but in less popular areas vendors may need to adjust their expectations on the length of time it will take them to secure a buyer and be realistic on price. However, the market as a whole continues to demonstrate resilience with opportunities for both buyers and sellers."