The average value of bare agricultural land in England and Wales reached a new record high of £9,335 per acre in the second quarter of 2024 – a 0.9% increase on the previous quarter and a 5.5% rise over the past 12 months, according to Knight Frank’s Q2 2024 Farmland Index.
The report shows that farmland values have increased by 32.8% over the past five years and 24.2% over the past decade.
The volume of land for sale this year has increased compared with 2023, but remains at historically low levels, with under 50,000 acres coming to market by the end of June.
Will Matthews, head of farms and estates at Knight Frank, said: “It is becoming increasingly hard to say how much farmland will sell for because the prices we are achieving vary so widely. There are so many factors influencing the market, from tax planning to environmental aspirations, that every parcel of land or farm that comes up for sale exists in its own microclimate that will determine its value to the eventual purchaser.
“For example, we have recently sold a very large block of land for over £20,000/acre and a smaller, but still sizeable, holding for around £45,000/acre. Conversely, some blocks have sold for closer to £10,000. It’s generally a given that property markets tend to slow down in the run up to big political events and this general election has proved to be no different with potential buyers and vendors sitting on their hands. What impact the change of government might have on the farmland market remains to be seen.”
