National farmland supply and values
At a national level, the supply of farmland in Scotland is down 7% compared to 2024 and 20% against the 2012-2016 average. Meanwhile, in Wales, it is much higher at 53%, due to a large estate launch. As the largest country, the overall story for the English market mirrors Great Britain, but there are regional differences. Relative to last year, supply is down 24% in the South East and 44% in the South West, while in the North it is 43% higher. Value growth was strongest in the South last year, so the limited supply could mean this trend continues in parts of the region this year.
Overall, farmland values have levelled off, as anticipated at the end of last year, due to various factors affecting confidence, including the changes to inheritance tax relief. During Q1 2025, values remained constant in Scotland and Wales, while the average land value was marginally down by 0.3% in England. This year, additional complexity has arisen due to the closure of the Sustainable Farming Incentive to new applicants in England, alongside economic instability resulting from President Trump’s tariffs. At the same time, the Office for Budget Responsibility expects the government’s planning reforms to deliver an economic boost, which is likely to be positive for farmland values.
Several recent high-profile transactions have highlighted the sector’s ongoing appeal to long-term investors. It will be late spring and summer before we can truly gauge the farmland supply and demand levels in 2025 and whether national and global policy changes have impacted the market.
