The market for commercial farms and larger blocks of land in 2025 proved to be active and resilient, with demand largely driven by farmers. Much of this activity came from dairy farmers seeking opportunities to expand existing operations, alongside purchasers with rollover funds still entering the market. Despite wider economic uncertainty, prices achieved throughout the year were stronger than many had anticipated.
In particular, larger blocks of land in excess of 25 acres performed well, with values ranging from approximately £9,000 per acre at the lower end to as much as £19,266 per acre for prime parcels. This highlights the continued demand for quality agricultural land, underpinned by its long-term value, limited supply and importance to operational farming businesses.
The residential farm market also experienced healthy levels of activity, especially for properties priced up to around £1.5 million. Within this bracket, demand remained robust, with good-quality residential farms attracting strong interest. However, above this level the market became more subdued. Purchasers were noticeably more cautious, influenced by broader market conditions, higher borrowing costs earlier in the year, and ongoing concerns around taxation. As a result, higher-value residential farms often required more realistic pricing and longer marketing periods to secure a sale.
Changes to Inheritance Tax (IHT) Agricultural Property Relief (APR) dominated rural headlines throughout much of 2025. The proposed reforms prompted a number of landowners to bring properties to the market earlier than originally planned, as families sought to take proactive steps in response to potential tax implications. Despite this, buyer sentiment remained largely positive and demand did not appear to weaken. Importantly, concessions announced towards the end of the year provided much-needed clarity and reassurance, which should only serve to strengthen confidence in the farms and land market as we move into 2026.
Looking ahead, we expect the supply of farms and agricultural land to remain tight during 2026. This constrained availability should help underpin values and maintain a stable market. While easing commodity prices may limit the scope for record-breaking figures, the overall outlook remains positive. With interest rates expected to reduce and greater certainty around the property tax position, conditions may improve at the upper end of the residential market. Any uplift here is likely to have a positive knock-on effect for residential farm sales.
Furthermore, the increased threshold for APR may encourage non-farming buyers to re-enter the market. This group was noticeably quieter throughout 2025, but renewed confidence could see their return, adding further depth to demand.
Our knowledgeable team ensures that advice is always tailored to your individual circumstances and property. Whether you are considering your future options or simply wish to understand the value of your farm or land, we are well placed to help. With unrivalled expertise across the farms and land market, we can provide informed, practical advice.
George Alder, Head of Farm Agency, comments: 
