Uncontrollable factors influencing GB farmland market performance so far this year
The continuing effects of policy uncertainty are one of many factors impacting the farmland market across Great Britain (GB). At the half year point, according to Savills farmland value survey, a 1.4% decrease in average farmland values was recorded, and on the supply side the volume of publicly marketed farmland in GB was down 12% from the same period in 2025 at 88,100 acres.
Since March this year, as well as grappling with the impacts of more frequent climate-related challenges, the farming sector has been faced with major increased costs due to the Middle East conflict. More recently however, a degree of policy stability has been delivered by The Land Use Framework (England) and Land Use Strategy (Scotland), which acknowledge the critical importance of land for not only food production but also alternative uses, such as development, infrastructure, and energy, providing the sector with opportunities to realise value over the medium to long-term.
Alex Lawson head of Savills Rural Agency comments, “The range of buyers in the market is as varied as I can recall during the past 30 years, What hasn’t changed is the fact most of them tend to have a medium- to long-term investment horizon, reflecting a fundamental characteristic of land ownership: its ability to preserve and appreciate wealth over time.”
Land type divide emerging
Overall, 56% of publicly marketed farmland was arable, compared with the 10-year average (2016–2025) of 38%, whereas mixed farms accounted for 17% of the farmland publicly advertised, compared with the 10-year average of 29%.
Despite the challenges facing the sector, many purchasers continue to recognise opportunities when they arise, particularly for best-in-class properties, where on occasions competitive bidding generated sale prices way above average land values. This is particularly the case when established farming businesses are competing hard for neighbouring or strategically important acres at levels that are difficult for buyers from outside the area to justify.
It’s not only climate change finding the new norm, as farm support continues to be withdrawn, farming businesses continue to seek income streams via crop production, supply chain contracts and alternative enterprises.
Kelly Hewson-Fisher head of Savills Rural Research comments, “The Farming Roadmap sets a clear long-term vision for a profitable, productive, resilient and sustainable farming sector with the primary purpose of food production – we’re seeing those keen to expand their farming operations and be part of the industry’s future active in the market. In addition, the alternative land use opportunities underpin the long-term future of this asset class.”