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Despite a dry summer and policy change across the agricultural sector, the farmland market in the South West has remained notably resilient. Demand continues to be underpinned by a mix of regional and national interest, as buyers continue to target or reinvest into this region.
George Alder, head of Stags Farm agency comments on the trends seen so far this year:
A key trend driving the current market is the increasing appetite for land acquisition, particularly by existing farmers looking to expand their holdings. This is set against a backdrop of limited supply, particularly for high-quality commercial farms and larger blocks of productive land. This supply-demand imbalance has maintained strong prices across the region.
Commercial blocks of land are currently achieving prices up to £19,266 in highly sought-after areas. The strongest levels of competition remain among farmers seeking to scale up operations, particularly as returns from dairy, beef, and lamb remain broadly favourable, particularly when compared with arable production. So far, the transition away from the Basic Payment Scheme has not significantly dented confidence, with many farmers viewing the new Sustainable Farming Incentive (SFI) scheme as a reasonable replacement, at least in the short term.
For many sales, location remains a crucial factor. Farms and land that offer good access to road networks or lie adjacent to existing established holdings are seeing the highest levels of interest. At the same time, lifestyle buyers continue to play a role in the market, particularly for properties that offer privacy, natural beauty, and proximity to the coast or national parks such as Exmoor and Dartmoor.
Properties with existing or potential diversification opportunities are also in demand. Farms with buildings suitable for conversion to commercial, leisure, or other alternative income streams are attracting increased attention, reflecting the changing nature of rural enterprise wanting a diverse income.
Although, from an investment perspective, farmland remains an attractive asset and interest continues from investors and conservation-focused buyers who see long-term value in land ownership. The inheritance tax treatment (IHT) compared to the 40% rate for many other assets—continues to be a significant draw for private buyers and estates planning long-term generational transfers.
Looking ahead, the South West farmland market is expected to maintain its strength, provided supply remains constrained. With growing interest from a diverse buyer pool and limited availability of prime land, prices are likely to remain firm. As rural land continues to be seen as both a strategic asset and a lifestyle investment, the market looks set to remain buoyant in the months ahead.
