The South West farmland market has demonstrated resilience during 2025, with demand for best-in-class property remaining steady, according to Savills.

The property consultancy reported this, despite the challenging economic backdrop and changes to the government’s support towards the farming sector.

Supply of farmland

In the South West, there were 24,309 acres publicly marketed to the end of October, a 15 per cent decrease on the same period in 2024, mirroring the trend across England.

However, supply remains higher than the preceding years going back to 2018.

The South West accounts for 22 per cent of all farmland marketed in England, underlining its importance as a key region for agricultural transactions.

Robin Fern, associate director in Savills Rural Agency team, said: “This has been a year of recalibration for the South West farmland market.

“After several seasons of volatility driven by global shocks and domestic policy shifts, trading patterns now reflect a more measured approach.

“Supply remains relatively tight, but the motivations behind sales, ranging from succession-planning to strategic portfolio adjustments, are shaping a market where quality and location is paramount.

“Demand has been steady, with well-located and productive blocks selling particularly well.”

Farmland values

On average, farmland values have fallen slightly by 0.6 per cent over the first three quarters of this year, but results vary by grade and region. See Figure.

Average land value per region (England) (Savills Research)

Robin continues: “The South West experienced sharper adjustments in certain sectors.

“Prime arable land values in the region dropped by 4% to £10,800 per acre, compared with a 2.1% fall nationally to £10,000 per acre.

Robin went on: “The strength of competition and prices achieved continues to vary widely within the region, and therefore pricing strategy is critical to success.

“Some of the best results from this year have gone under offer within the first few days of their launch, often with competitive bidding leading to a sale price agreed in excess of the guide price.”

Policy impacts on farmland

Regarding policy developments, Robin said :“The long-awaited Land Use Framework and Local Nature Recovery Strategies could revive interest from natural capital investors, whose activity has been muted this year.

“Meanwhile, progress on the Planning and Infrastructure Bill may unlock development opportunities, adding strategic value for some holdings.

An optimistic future for farmland

Despite economic headwinds, Savills reports the South West market is ‘likely to remain underpinned by lifestyle and rollover demand’.

The consultancy recommends sellers to have effective marketing and realistic pricing to achieve successful outcomes in a market where well-located and high-quality land commands a premium.

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