Published: 25/07/2025 By Ross Willmington
The farmland market has entered summer 2025 with a combination of resilience, uncertainty, and cautious optimism. While the fundamentals of land as a long-term, inflation-proof asset remain strong, the recent political developments are starting to cast a longer shadow over succession planning and agricultural investment.The Chancellor, Rachel Reeves, made headlines recently with an emotional moment in the Commons – and while commentators speculated on the cause, many farmers and landowners might say, “now she knows how we feel.” The government’s proposed changes to Agricultural Property Relief (APR) under Inheritance Tax have created huge concern in the rural community. Triggering a wave of early professional advice-seeking and, in some cases, pre-emptive restructuring of ownership within farming families or even sales. We live in hope of another Labour U turn on APR, but it seems unlikely.
Despite this uncertainty, the market remains underpinned by strong demand and limited supply. Decent arable land continues to command between £11,000 and £15,000 per acre, with premiums paid for accessible blocks. Pasture and more marginal ground remain in demand among buyers interested in expansion, environmental schemes (we pray the SFI opens again soon), carbon projects, or some rewilding initiatives.
We are seeing three broad buyer groups in the market:
- Farming families seeking strategic expansion
- Private investors looking for long-term security in land
- Lifestyle purchasers, still active and often motivated by amenity parcels, often with woodland and natural water
The market for smaller, residential farms has been tougher, but there now seems to be increased activity and more sales being agreed than in the spring. Good commercial farms are rare to the market in our patch, and we have a substantial number of cash buyers still looking for the right farm.
Looking ahead, the farmland market is stable but clearly facing transition. Taxation, policy, and political headwinds will be dominant themes in the months ahead. What hasn’t changed is the value of experienced agents, discretion and good advice. If you are thinking of buying, selling or restructuring your holding, our specialist Farms & Land team is here to guide you – come what may from Whitehall!
For more information, please contact Ross Willmington on 01297 33122 or agents in your nearest office.
Dairy House Farm, West Dorset. 83.75-acre farm. Sold April 2025
Farms & Land For Sale
