The farmland market moved into Q4 2025 with activity noticeably more selective and price discovery more evident than in recent years. Nationally, supply remains constrained, but demand is increasingly segmented by buyer type and by the quality of the asset. In our Northern Home Counties patch, values have softened and farmer-buyer demand is weaker than we have become accustomed to.
National picture
The larger agents all report a market of contrasts. Average values have softened in many arable regions, while best-in-class farms continue to attract strong interest. Transaction volumes are lower than in the post‑pandemic peak, reflecting both reduced supply and more cautious demand.
Policy and taxation
Despite being described as budgets for growth, recent government fiscal policy has created significant uncertainty for rural businesses. Changes proposed in the 2024 Budget around inheritance tax and agricultural and business property reliefs caused widespread concern. The increase in the APR threshold announced before Christmas 2025 was welcome, but many farming families remain exposed to potential inheritance tax liabilities.
Farming economics
Returns from the 2024 and 2025 harvests have been disappointing. High input costs combined with lower commodity prices have squeezed margins and reduced confidence. As a result, farmer demand for land is lower than in recent years.
Northern Home Counties
Locally, we are seeing softer values, particularly for secondary land. Prime, strategic farms still attract interest, but pricing has become more sensitive and realistic guides are essential.
Looking ahead to early 2026, confidence will remain fragile until there is greater clarity on tax and agricultural policy. Well‑presented farms with strategic attributes will continue to outperform the wider market.
