Estates market faces drop in buyer interest

The raft of new legislation in the rental sector, along with other factors, is stifling buyer interest in farming estates, with some failing to sell and others changing hands at up to 15% below their guide prices.

This legislation, as well as changes to inheritance tax reliefs and farm support payments, the cost of refurbishing large houses is deterring some buyers, says rural agent Charlie Evans, of CKD Property Advisers.

See also: Months of rain hold back spring launches

Subdued demand

Typically, in sales of properties with more than 1,000 acres of farmland, a principal house, cottages and woodland, demand is subdued unless the property is exceptional, he says.

A key reason is the Renters’ Rights Act in England which comes into force on 1 May 2026, with similar rules already in place in Wales and Scotland.

Other legislation including Minimum Energy Efficiency Standards (Mees), due to be tightened in 2030, is also having an effect.

These have made the prospect of owning let cottages on country estates less appealing.

Charlie describes the impact on estate and farm cottages of the abolition of Section 21 so-called “no fault” eviction notices as a classic case of the law of unintended consequences.

“This legislation was never really designed with the farming estate in mind, where there is let accommodation very close to where the owner lives.

“The owner will want control over who lives in that accommodation, but regaining possession under the new legislation will be complicated and with no certainty, possibly involving a court process with huge delays.”

The impact is already being seen on estates and farms being prepared for sale this spring, with many owners seeking possession of let property before 1 May.

More estates will now be marketed with vacant cottages, which has not historically been the case.

Compliance costs

Mees legislation and the stringent focus on energy performance have reduced the commercial viability of “quaint” farm cottages because of the cost of improvements to achieve compliance.

Let cottage income was once one of the pillars of the overallv income stream of a rural estate, says Charlie.

“It was very important, but without doubt the appeal of owning a portfolio of let cottages has substantially decreased.”

It has resulted in more estate residential properties being offered for sale in separate lots, to give buyers the option to include them in the purchase.

Analysis of the 2025 market by CKD Property Advisers points to estates changing hands at an average of 15% below guide price, when measured against those prices set in spring 2025.

Quality still sells

There is still buyer demand, but guide prices must be realistic, Charlie advises.

“Anything that looks overpriced will come under pressure as there are fewer buyers than there have been.

“In these slightly troubled market times, quality is absolutely everything. A really good farm or estate in the right location will still sell incredibly well, even with the proviso of the 1 May regulations.”

Knight Frank’s head of farms and estates, Will Matthews, agrees.

“There are not very many top end estates coming to the market and, because there is such an accumulation of global wealth, when they do they are selling very well,” he says.

The firm marketed some of those estates in 2025, and while Will admits they weren’t as easy to sell as they might once have been, this was in part due to sellers not heeding advice on the guide price.

Some currently being marketed more generally are possibly 30% overpriced, not 15%, he suggests.

“I travel the country giving advice but am then told (by the vendor) what it must go on the market for.”

Cumbrian upland grazing

Grade 5 upland grazing land at Nenthead, Cumbria © H&H Land and Estates

Launches remain few and far between this week, but in contrast to the estates described above, a parcel of mostly Grade 5 land is coming to the market at Nenthead, near Alston,  Cumbria.

The 172-acre block of upland grazing land, which rises from 430m to 565m, has roadside access and natural water supplies.

H&H Land & Estates, which has set a guide price of £250,000, says the land is an opportunity for an existing farm business to increase its acreage, and that it also has environmental, biodiversity and carbon offsetting appeal.