Against this backdrop, a total of 34,200 acres of farmland were launched onto the public market between January and the end of April 2026, 8% less land than in the equivalent period of 2025. The number of properties launched fell by 14%, but compared with the 10-year average there were more larger holdings – particularly those between 500 and 999 acres. Twelve farms in this size band came to the market, the highest number recorded since 2002.

Such properties typically fall outside a couple’s combined £5 million inheritance tax (IHT) relief for agricultural and business property, as revised in December last year – although their scale may make them more likely to have tax-planning arrangements already in place. It is still too early to determine whether the increase in larger holdings for sale is linked to the IHT reforms, but the way owners respond to the potential IHT burden will be an important issue to monitor in the years ahead.

As shown below, these holdings accounted for 26% of the land marketed during the period, compared with a 10-year average of 13%.

Overall, the marketed area was 45% lower in Wales and 59% higher in Scotland. In both nations, the number of properties was down year on year; however, these are smaller markets and supply tends to be more volatile than across Great Britain as a whole. In England, the supply of farmland was 12% lower than a year earlier, and 11% fewer properties were marketed.

Regional variations in England

Within England, there was considerable regional variation. Supply increased year on year by 21% in the South West, but was 1% to 34% lower across the remaining regions. The East of England, East Midlands and West Midlands sit closest to, or above, their pre-Brexit baseline (2012–2016), with supply in the West Midlands 16% higher on this measure.

While the South West is 28% below this baseline, as a region it has had the most launches so far this year, with 34 properties over 50 acres in size brought to market, compared to 28 last year and an average of 41 in the 2012-2016 period.

Income from environmental schemes will be a major factor this year

This year, farmers across Great Britain will be focused on securing new income from environmental schemes. Farmers in Wales can now choose to enter the Sustainable Farming Scheme and transition away from the Basic Payment Scheme for which payment rates are going to be cut heavily, initially by 40% this year. Details of the optional and collaborative layer payments have recently been published.

Prior to the election, the Scottish Government published its Rural Support Plan which confirms strong budget allocations towards its future direct payment schemes.

And in England a £100,000 cap has been introduced on SFI 2026 agreements because a quarter of the budget for the earlier versions of the SFI was going to just 4% of the agreement holders. Some larger farming businesses have been receiving significantly in excess of £100,000 from the SFI and legacy schemes, so will experience significant reductions in income as their existing agreements expire.

The macro picture

The conflict in the Middle East has added further complexity to the factors affecting farmers and landowners’ businesses and decision-making. Its impact will depend on how long the conflict lasts, and this is understandably subject to significant uncertainty. At the very least, interest rates are expected to remain higher for longer, raising borrowing costs for borrowers and increasing returns on cash deposits, which can weaken demand. On the other hand, the conflict also underscores the importance of a productive agricultural land base.

The costs of fertiliser and fuel have risen, partially offset by higher grain prices. If fertiliser production capacity and availability remain constrained in the medium term, this will increase demand for land globally to compensate for lower yields, and food prices are likely to rise. In some countries, this will bring underutilised land back into production, while in the UK it is more likely to strengthen the contribution that agricultural returns make to land prices. At this stage, we do not believe the conflict has materially affected the farmland market or buyers’ and sellers’ decisions, but it remains a watch point.

Further information

Contact Andrew Teanby or Alex Lawson