Farmland prices robust despite sharp drop in sales

The volume of farmland coming onto the market in England and Wales has fallen sharply at the start of 2026, as uncertainty around politics, the wider economy and global events prompts landowners to delay sales.

This is according to the latest Knight Frank Farmland Index, which reports a slow opening to the year during what is typically the busy spring selling season.

By the end of March, just 2,266ha had been publicly marketed – down 54% on the same point in 2025, according to the index.

See also: Land market falls as uncertainty delivers buyer caution

A combination of factors has weighed on the market, such as the ongoing conflict in the Middle East, which has driven up input costs, including fuel and fertiliser.

Meanwhile, poor early-season weather disrupted farm operations and delayed planned listings.

Will Matthews, head of farms and estate sales at Knight Frank, said much of the land currently coming forward is being sold out of necessity.

“A significant number of the properties we are seeing are executor’s sales,” he said.

“Unless they have to sell, potential vendors don’t think it’s worth putting anything up for sale because of all the negative sentiment about politics and the economy in general.”

Demand for farmland

Despite reduced supply, demand for farmland remains resilient and land values have held steady.

Buyers continue to be drawn by tax considerations, including agricultural and business property relief rules, which allow up to £5m of assets to be passed on free of inheritance tax, with a reduced 20% rate applied above that threshold.

Average prices for bare agricultural land slipped by just 0.9% in the first quarter of 2026 to £8,622/acre, with a year-on-year decline of 5%.

Prime arable land continues to command stronger prices, with land west of London still achieving about £10,000/acre.

Knight Frank said a recently marketed block in the south of England had already generated strong interest from high-net-worth buyers.

Looking ahead, more properties are expected to come forward in late April and into May, although volumes are unlikely to rise enough to significantly affect prices, the land agency suggested.