Supply of farmland increased by more than one-third

The figure also marks a 19% increase compared to the pre-Brexit levels of 2012-2016. 

Savills experts said that overall, farmland values for Great Britain increased by an average 1.7% in the 12 months to June, putting the average value for all farmland at £8,242 per acre compared to £8,101 per acre in 2023.  

Average prime arable land values reached £10,140 per acre and average livestock land £7,121 per acre.  

The cumulative effect of the agricultural transition and the array of demands on farmland suggests the adaptability of grade 3 arable land to multiple uses is reflected in its popularity, and values have increased by 6.5% in the South West and 2.9% in the east Midlands, Savills confirmed.

Strong buyer appetite

Kelly Savills, head of rural research, said: “In January we forecast the supply of farmland would continue its upward trajectory with the market returning to historic average levels of supply. So far this has played out. 

“Also, this year’s spring marketing window was compressed due to the extremely poor early weather, and of the total acreage marketed during the first six months of this year, 93,435 of them came to the market from April.” 

Ms Savills added that looking at the size of farms marketed in all areas of the country apart from the West Midlands there have been more larger blocks, over 500 acres, marketed than in 2023. 

Charlie Paton, Savills director, added: “It is clear following the marketing of a number of farms and estates ranging from prime residential estates to substantial farming portfolios, there is strong buyer appetite for best in class properties across all sectors.  

“However, buyers are more selective than ever, and presentation of a property and pragmatic pricing is paramount.”

Safe haven and stable return

Savills experts explained that during economically pressured times, farmland remains a popular investment choice, being a “safe haven” and providing a stable return over a long holding period.  

However, farmland is not benign to economic pressures entirely, higher interest rates are influencing decision making for both sellers and buyers.  

The research found that buyers continue to include local farmers and those from overseas. Those motivated by rollover relief, while still present in the market place, 
 are from a smaller pool.  

Buyers looking at environmental opportunities are active, although other factors such as grant funding for forestry or longevity of carbon markets have stabilised the market in some areas.  

Market drivers for the future will include consideration of both agricultural and environmental policy and economic pressures, Savills said. 

Evelyn Channing, head of rural agency Scotland, added that the increase in supply in Scotland has not translated into a wealth of options for buyers, with only 24 equipped farms over 300 acres marketed during the past six months, with nearly half located in the South West.  

“Buyers are increasingly discerning, placing a strong emphasis on land quality and productivity.  

“Less motivated or discretionary buyers are seeking clarity from the Scottish government over future farming subsidies and are holding off in anticipation of interest rates decreasing,” she concluded. 

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