Latest analysis of Strutt & Parker's Farmland Database shows the average price achieved for arable land over the first nine months of the year was £10,600/acre, while pasture averaged £8,700/acre.

Both these figures are marginally higher than the figures published in our summer report, as additional data has become available. But the trend that developed in 2025 of fewer sales happening in the higher price brackets per acre, for both arable and pasture, has continued into 2026.

Sam Holt, Head of Estates & Farm Agency for Strutt & Parker, says: "England's farmland market continues to demonstrate resilience, with average values holding firm despite the challenging conditions currently impacting the agricultural sector. We are seeing that supply remains relatively constrained, demand is showing signs of stabilisation and both farmers and other buyers continue to see opportunities in investing in land.

"Only 22,800 acres were publicly marketed in the third quarter, which is 16% below the five-year average and down from 33,800 acres in the same period last year. While a total of 260 farms have been publicly marketed during the first nine months of 2026, this is only six more than in the same period of 2025. There is some evidence of a small increase in the number of smaller (100-150 acre) arable farms which have been launched, but no evidence of a widespread increase in farmers choosing to leave the sector."

Mr Holt explains that demand is also showing signs of stabilisation.

"The proportion of farms marketed during last year that have either now sold or are under offer is slightly higher than the level we saw 12 months ago. Farmers have accounted for 62% of purchases so far this year, the highest proportion recorded for well over a decade. This suggests that, despite the pressures facing many farming businesses, there remains a strong appetite among some farmers to invest in land and continue farming over the long term. The gap between buyers' and vendors' price expectations has also narrowed, which has helped to facilitate some of these deals.

"While the proportion of farms and estates acquired by private and institutional investors has decreased this year, we continue to work with a number of investors actively seeking opportunities," points out Mr Holt. "For such buyers, farmland continues to offer the potential for long-term investment, diversification and relative stability in an increasingly volatile economic environment. The combination of investment potential and lifestyle appeal also continues to support interest in the country estates market. Of the country properties that Strutt & Parker sold for over £5 million in the last quarter, three sold to overseas purchasers."

Mr Holt says the Autumn Budget remains an important consideration for both buyers and sellers, because of the uncertainty it presents in terms of taxation policy.

"The reduction in new properties coming to the market in recent weeks may, in part, reflect vendors' preference to bring properties to market at a point in the year that allows sufficient time for sales to be concluded before any potential changes to the tax regime are announced. We also expect limited new launches before the end of the year.

"As we move into 2027, there are a number of potential factors at play. Ahead of the Budget, there has been some speculation that the Treasury may be considering reversing the Inheritance Tax (IHT) reforms that came into effect earlier this year. The scope for doing this will inevitably be influenced by the wider pressures on the public finances, but if it were to happen, it would be likely to increase the number of buyers.

"Meanwhile, it will be interesting to see the extent to which high fuel and fertiliser costs, low yields and difficulties accessing the Sustainable Farming Incentive (SFI) continue to weigh on sentiment in the arable sector. It remains possible that these pressures could prompt more farmers to rationalise their land holdings as we move into spring, but there is sufficient scarcity in the market that any increase in supply will be met by demand."