The firm’s latest Farmland Market Update report has revealed that average arable land values climbed by 0.9% when compared with Q4 of 2024, reaching £9,811 per acre. This represents a 1.5% increase by comparison with Q1 of 2024.
Meanwhile, pasture land values rose to £7,959 per acre, up 0.8% from Q4 of 2024. When compared with Q1 of 2024, pastoral land prices have risen by 1.9%.
Carter Jonas analysis found that there remains a significant level of interest in arable and pastoral farmland from a varied buyer base despite ongoing structural change within the industry.
This includes those buying for commercial farming, as well as buyers with environmental and amenity interests.
“At this time, supply is significantly down year-on-year as some landowners continue to delay property launches while they evaluate their positions following announcements made in the autumn budget,” said Andrew Chandler, head of rural agency at Carter Jonas.
“However, there is evidence to suggest that supply is improving as we move into the traditionally busier sales period and are constantly reviewing the market.
“We are seeing a subtle increase in values from this time last year, with arable up by 1.5% and pasture rising by 1.9%. While arable land remains 3.5% below its 2016 peak, grassland continues to reach record levels and is now 4.5% above its peak.”
The northern regions have largely fuelled recent increases, while the pattern of growth has varied from region to region depending on the time of year. However, competition for premium agricultural land remains high, with demand consistently exceeding available supply.
“There is anecdotal evidence of values being achieved well above guide prices where land is well-positioned and there is a strong commercial interest,” noted Sophie Davidson, research associate at Carter Jonas.
“In particular, there are active requirements from commercial farmers seeking equipped farms with existing infrastructure, or the opportunity to build it.
“Outside of these markets, some types of land are experiencing increased price sensitivity, which could potentially lead to value readjustments or an acceleration in lotted sales to broaden buyer appeal.”
