Farming News - Strutt & Parker press release: Average farmland prices remain stable, despite mood of caution
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Strutt & Parker press release: Average farmland prices remain stable, despite mood of caution
Analysis of Q1 2026 highlights reduced supply
The UK farmland market in England has remained stable during the first quarter of 2026, with limited supply and steady demand helping to offset a wider mood of caution across the sector.
Analysis of Strutt & Parker's Farmland Database shows just over 7,000 acres were publicly marketed, which is 3,300 fewer acres than during the equivalent period of 2025 and 15% below the five-year average.
Sam Holt, Head of Estates & Farm Agency for Strutt & Parker, says: "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."
Mr Holt says interestingly, despite a prevailing mood of caution in the market, the data does not reflect this sentiment as strongly as some might expect.
"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," he says. "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 – we have recently exchanged on the private sale of a 1,800 acre arable farm just two weeks after the offer was accepted.
"At the lower end of the market, some arable land is changing hands for around £7,500/acre and that tends to be in areas where farmers have little competition and are bidding mindful of the land's profit potential. Where a market is stronger because of local dynamics, then prices are significantly higher. Indeed, our data shows that in 2025 30% of arable land sold at £12,000/acre or more which has kept average prices near record levels.
"Overall, while activity in recent months has been relatively subdued and transactions are tending to progress slowly, it is a market that feels stable, with opportunities for both buyers and sellers."
Looking ahead, Mr Holt says he anticipates the market will continue in a similar vein to last year.
Prices are likely to continue to be highly variable, with demand being robust in some localities, but softer elsewhere, and supply consistent with the five-year average.
"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. Farmers – who accounted for nearly 60% of transactions last year – are likely to remain cautious in their approach, although there remains a good number of active expansionist farmers looking to grow their businesses."
Mr Holt says for vendors combining the right marketing strategy with expert insight and market intelligence will be key to achieving the best result.
Louise Harrison, Strutt & Parker's Head of National Estates & Farm Agency team, explains that in the current market strategic lotting of estates and farms can enhance saleability and the overall price achieved.
"We are seeing in the estates sector that some buyers can be reluctant to take on properties with extensive residential portfolios because of the high costs of maintaining and improving let property, combined with the introduction of the Renters' Rights Act in May. This means thoughtful lotting is as important for premium estate sales as it is for the commercial farmland market.
"Market knowledge is also important in terms of identifying potential buyers who can be brought together to purchase the component parts of a whole estate - whether it's neighbours or buyers who like certain asset types, as this can maximise the sale price. However, there are also times when an owner of an estate would prefer to sell it as a whole, and then it's important to find a buyer who is prepared to take a longer term and more holistic view."