Land market in 2025: Scotland

Pressure on farm margins heightened price sensitivity in the Scottish farmland market in 2025.

While parts of the east coast, including Angus, East Lothian and Fife, saw sale prices well in excess of £12,000/acre and more than £18,000/acre in the most sought-after arable areas, prices for productive secondary arable and good silage ground hit the £7,000/acre mark.

See also: Land market 2025: Wales

There was a wide variation in prices paid for hill ground and marginal pasture, from £1,000/acre to more than £4,000/acre, with significant scrutiny by buyers before they committed on conservation and wildlife designations, soil structure, and access for planting and harvesting.

Luke French, Savills head of rural agency, Scotland

Despite early concern following the proposed inheritance tax (IHT) changes, the Scottish farmland market proved more resilient than anticipated.

The feared sharp rise in supply and weakening of demand did not materialise.

Total publicly marketed farmland supply in 2025 fell by 16% year-on-year, but supply was unevenly distributed.

The Borders and Dumfries and Galloway accounted for almost half of all farmland marketed, while several of the traditionally active eastern and northern regions were noticeably quieter.

Tighter farming margins and wider economic uncertainty led to a more cautious and considered buyer approach, reflected in sharper price sensitivity.

The market was led by farmers, either seeking sensible expansion opportunities or relocation to more productive holdings or those offering greater scale.

While rollover buyers remained active, there was a growing presence of purchasers supported by diversified farm income, off‑farm capital and infrastructure‑related projects.

This maintained competition, particularly for high‑quality arable land and well‑located bare land, where values held up well.

We expect land availability to remain constrained in 2026.

Demand should stay firm but selective, with realistically priced, well-presented farms continuing to perform strongly, particularly in desirable farming areas.

Duncan Barrie, partner, Galbraith

Demand for Scottish farms and land has remained strong, with prices underpinned by limited supply and good rates for finance.

The market was influenced by uncertainty in 2025 following the proposed IHT changes and fear of more announcements in the November Budget, prompting transactions to be brought forward.

Increased pressure on margins and lower farmgate prices in arable and dairy tempered some enthusiasm for land in the second half of the year.

The year ended on a more positive note with the significant increase in the IHT relief threshold, and we are now seeing landowners and farmers looking at potential purchases with increased enthusiasm for expansion and diversification.

Already there is a marked uptake in those registering an interest in the land holdings on our books.

There was no significant shift in values in 2025. Most land types sold for similar prices as in 2024, but productive arable land and mixed farming units performed well, driven by demand from agricultural businesses and non-farming interests.

The market for bare land for planting and hill ground for forestry has largely stabilised – most sales are well below the peak prices seen two years ago – but interest from investment funds has returned. 

For sale

Westwood Farm © Galbraith

Westwood Farm at Houndwood in the Scottish Borders has 211 acres of Grades 3 and 4 arable, pasture and grazing ground.

The holding has a three-bedroom farmhouse needing modernisation, general purpose buildings and a dedicated pig shed. Galbraith is guiding this at £995,000 and also offering it in two lots.

Old Mill © Savills

Old Mill, at Strichen, Aberdeenshire, is on the market at offers above £1.99m.

The farm has 373 acres of arable, grass and woodland, most of which qualifies for Less Favoured Area Support Scheme payments.

There are modern farm buildings and two farmhouses. Savills is marketing it as a whole and in three lots.

What sold well

Penston Farm © Galbraith

Penston Farm, with 616 acres near Macmerry, East Lothian, has Grade 2 and 3.1 arable land and an extensive range of modern and traditional buildings.

Guided by Galbraith at £8.175m, it sold in excess of that to an existing farming enterprise amid strong competition.

The farm includes an area of land zoned for employment use in the Local Development Plan, a traditional farmhouse and three cottages.

Wellrig © Savills

A local farmer seeking additional acres and buildings bought 361-acre Wellrig Farm at Melrose in the Scottish Borders for more than Savills’ £2.6m guide price, using funds generated from outside of agriculture.

The land, mostly Grade 3.2, is capable of producing high-quality cereal crops.