Jonathan Hird, Associate Director at H&H Land & Estates, expects the healthy land market in the North West will continue, despite the prevailing uncertainties into the new year.
As another challenging year for agriculture draws to a close, the land market across the North West region has shown remarkable resilience. Despite ongoing uncertainty around government policy, subsidy reform and taxation, both demand and prices have remained stable, with good quality agricultural land continuing to command strong interest.
The phasing out of BPS and changes to environmental schemes have, so far, had little direct impact on values, and the widely anticipated surge of land entering the market after the 2024 Budget did not materialise. Similarly, uncertainty surrounding forthcoming IHT changes has not reduced appetite from non-agricultural cash buyers.
The strongest market driver remains the scarcity of land and there is only every going to be a finite amount, no one can make any more. Farmers continue to compete for neighbouring or strategically located parcels, with auctions in particular achieving premium prices, this is especially the case for bare land, smaller blocks and smallholdings. In parts of Cumbria, parcels have exceeded £27,000 per acre, demonstrating the continued willingness of both farmers and investors to pay for quality and location. However, throughout 2025, the market has shown an increasing price gap between prime productive land and lower-quality or poorly accessed parcels, with buyers becoming more selective about soil quality, access, infrastructure and long-term sustainability. Off-market sales transactions continue to be a consistent feature, as they give the landowner flexibility while also allowing buyers to move discreetly and efficiently.
More favourable mortgage rates have helped some purchasers, particularly in the dairy sector, where good stock and milk prices supported strong demand earlier in the year. Whether the recent drop in milk prices will soften demand remains unclear, as there is not yet sufficient market evidence to assess the impact.
Valuation work has been exceptionally busy, driven by families preparing for potential IHT changes as well as longer-term estate planning and diversification decisions. Many farmers have secured lending and funding from their banks, and this reflects their confidence in the sector’s future
Beyond land sales, uncertainty around capital grants and the evolving SFI has continued to shape business decisions. Despite ongoing frustrations with the RPA’s administrative processes, several Slurry Infrastructure and Farming Transformation Fund applications have been successful.
The ongoing changes and amendments to the Countryside Stewardship and SFI schemes has provided uncertainty for many farming businesses and further support is needed for the many additional challenges farmers face, such as commons management and governance, biodiversity net gain and habitat assessments, and natural capital appraisals. Needing to consider and address their farming practices means our expanding environmental team has also had a particularly busy year supporting them.
Looking ahead to 2026, the outlook remains broadly positive. Demand for land and farms is expected to stay selective but stable, with productivity, access, and location continuing to underpin values. Much will depend on early-year policy clarity, particularly regarding taxation and long-term land-use direction, but with easing interest rates and improving confidence, a balanced and active market is expected into the new year.