Farmland market remains in a holding pattern as values ease in Q2

While the annual decline marks the weakest 12-month performance since 2017, values remain historically high, having risen by more than 20% over the past five years and by almost 185% over the past two decades.  

The latest figures suggest the farmland market remains in a holding pattern as both buyers and sellers continue to grapple with political and economic uncertainty. Activity remains subdued, with purchasers in no rush to commit while many landowners are equally reluctant to sell. The volume of land advertised for sale during the first half of 2026 was almost 25% lower than during the same period last year, according to Farmers Weekly Land Tracker data referenced by Knight Frank.  

While Andy Burnham's arrival in Downing Street has brought an end to the political uncertainty surrounding Labour's leadership, it has yet to provide farmland buyers and sellers with greater clarity over the future direction of tax, agricultural and environmental policies. At the same time, higher fuel and fertiliser costs threaten to put additional pressure on farm profitability over the coming year.  

"Because sales volumes are so low at the moment, it is impossible to say what an acre of land is worth," says Will Matthews, Head of Farms & Estate Sales at Knight Frank. "The right block of land in the north Cotswolds could still make £20,000 an acre, but in other areas you might be pleased to achieve £10,000 an acre. In the past we've talked about regional sub-markets, but now every sale seems to have its own microclimate."

Mr Matthews believes sentiment, rather than affordability, remains the key challenge facing the market.

"On the one hand, the economic and political uncertainty makes it feel like a buyer's market, and everybody wants to chip away at the guide price; on the other, few vendors are that motivated to sell if they don't get offered what they are asking for. But the biggest issue isn't affordability; it's really sentiment. There is still a huge amount of money out there, and we have achieved some high prices recently with plenty of interest in our latest launches, but it's taking longer to get deals over the line."  

With few signs of significantly more land coming to the market over the summer, Knight Frank believes farmland prices are unlikely to tumble. Quality farms and estates in desirable locations continue to attract firm demand, helping to underpin values despite wider economic and political uncertainty.

The Knight Frank Farmland Index has tracked the value of bare agricultural land since 1944. To read the index in full, visit https://www.knightfrank.co.uk/research/reports/english-farmland-index-157