Johnny Cordingley, partner at StephensonsRural, reviews the 2025 agricultural property market in Yorkshire - where demand for commercial farms and small parcels has remained strong, and the gap between versatile land and heavier ground is becoming more pronounced.

2025 has been a strong year for StephensonsRural and BoultonCooper in terms of agricultural property sales. We are proud to maintain our position as the go-to agent in Yorkshire for farm and land sales. Looking back, a few key points stand out:

• There is demand for fully-equipped farms. The more commercial, the better
• The market for smallholdings remains very strong
• Land prices remain highly dependent on location and quality
• Small parcels continue to attract a premium over and above agricultural value

Upcoming changes to Inheritance Tax have led many farmers to focus on retaining existing assets rather than expanding their land holdings. Coupled with low returns in the arable sector, you might expect this to steady land values. However, the average price per acre of bare land sold on our books has increased in 2025 by over £300 per acre.

This does not reflect the national market as a whole, but it does point to a clear gap now forming between good quality land and heavier, less versatile land. Demand is strong in certain areas where land is versatile and large farming businesses are looking to expand.

For a few years now, the ‘roll-over’ buyer has been a key player in the land market. Although there is plenty of activity in the development sector, it iss currently hindered by red-tape with sites being held up in the planning system. We will have to wait and see whether this decreases the buyer’s activity in the land market.

Many of this year’s sales have come from non-farming landowners offloading or retirement sales. Where there is no successor to farm, the pending changes to Inheritance Tax offer less incentive for the older generation to retain ownership.

Looking ahead to 2026, the changes to Inheritance Tax take effect in April 2026. This will not bring a glut of farms to the market overnight - the farming community are not all going to die on that date - but it is already prompting planning and conversations, and we have been involved in many of them. If low arable returns and inconsistent weather continue for another year, it may lead some smaller arable businesses to seriously reconsider their position.

StephensonsRural & BoultonCooper already have a number of instructions ready for 2026, including the 1,200 acre Knapton Estate, to the north-east of Malton, which launched to the market this week. 

If you’re considering a sale in 2026 or would like an up-to-date view on values in your area,
contact the StephensonsRural and BoultonCooper teams to discuss your options.