Dip in land values as tax uncertainty stalls market

THE farmland market in England and Wales remains in limbo as the sector braces for the Government's upcoming Budget and the looming introduction of Inheritance Tax (IHT) reforms.

- 

According to the Knight Frank Farmland Index, the average price of bare agricultural land fell by 1.6% during the third quarter of 2025 to £8,719/ acre, bringing the annual decline to 6.8%.

Over the past five years, however, values remain up 24.5%, and over the last two decades they have risen by 210%.

Market activity has slowed to a near standstill. By the end of September, only around 90,000 acres of agricultural property had been publicly advertised this year, an increase of just 10% on the same period in 2024. Few deals are being struck as both buyers and sellers hold off amid political and fiscal uncertainty.

Will Matthews, head of farms and estate sales at Knight Frank, said: “We largely find ourselves pretty much in the same place as this time last year, waiting for a Budget. Everyone's hoping things can’t get any worse than last year, but a growing number are starting to worry that they possibly could.”