Scottish farmland remains resilient
As spring unfolds in rural Scotland, Savills reports steady demand and ongoing tight supply, shaping a farmland market that remains resilient.
Addressing an audience of 400 real estate professionals at Savills annual spring Scottish Property Outlook, rural agent Diane Fleming said confidence has carried through from last year’s stable farmland performance. Strong competition for Scotland’s finite land resource – spanning agriculture, amenity, housing, energy, infrastructure and natural capital – is continuing to support values.
Fleming said well‑prepared vendors may find themselves in a favourable position. “Tight supply and steady demand make this a constructive time for those considering a sale. Supply is likely to stay tight through 2026, which is underpinning prices. But from 2027 we expect more land to come forward as larger agri‑businesses address their inheritance tax liabilities.”
According to Savills Research, farmland values remained stable in Scotland last year, whilst the wider GB market saw a slight softening of around 2%. Prime Scottish arable acres now average just under £12,000, above the GB average of £10,000. However, other land types in Scotland – particularly pasture, marginal land and hill ground – continue to lag behind their English equivalents. Demand remains broad‑based, driven mainly by expanding farmers but supported by buyers with diversified income or capital generated outside agriculture.
The farmland trends shaping 2026
Many of the forces that shaped last year’s market are continuing into 2026. Limited supply, strong buyer intent and growing interest from non‑farm capital remain defining dynamics of the season. The backdrop to this lies in 2025’s notable supply contraction. Despite expectations that inheritance tax proposals in late 2024 might prompt a rush of sales, the opposite occurred: publicly marketed farmland across Great Britain fell by 12%, and in Scotland by a sharper 17%, equating to around 6,000 fewer acres. Most sales were driven by retirement, succession and restructuring rather than tax‑motivated disposals.
Fleming said this pattern is still shaping conditions. “Demand remains steady and focused, with farmers continuing to be the main buyers, while those supported by diversified income or off‑farm capital will help sustain competition for productive units.”
The average Scottish farm launched in 2025 was around 400 acres, slightly larger than in previous years, and when high‑quality units or productive bare land did reach the market, buyers acted decisively. Capital from outside agriculture – particularly in areas benefitting from grid infrastructure investment – added competitive pressure last year and this is expected to remain a feature of the 2026 market.