Spring, Inheritance Tax and the Outlook for Farms and Land
April 2025
Spring is finally here and is traditionally seen as the prime time to put your farm or rural property onto the market. However, with the proposed changes to inheritance tax reliefs and recent suspension of the SFI schemes, the government does not currently seem to be providing much encouragement to the agricultural industry! What effect may this have on the likely supply and value of land and farms coming to the market? We have spoken with Greenslade Taylor Hunt’s head of Rural Agency, Richard Webber, to give us his thoughts.
Despite the political changes we keep having to endure in the agricultural sector, most farmers are still keen to secure and grow their farms for future generations. In the current climate, some of the older generation may decide it is time to ‘hang up their boots’, which may result in some potential sales, especially with the future tax reliefs being significantly reduced. Capital grants and environmental schemes have been more important of late, but there is current uncertainty in some of those areas. On a more positive note, agricultural commodity prices have generally remained buoyant, helping to reassure buyers. Will all this result in more farms and land coming to the market?
Whilst it’s probably too early to predict, the majority of our current sales are being driven by the common themes of downsizing/ upsizing, retirement and probate, and there is certainly no sign of any panic as a result of the government changes. Whether this is still to come only time will tell. Undoubtedly, some of the main factors that will be key in determining farm and land values over the next year or two will be level of supply and location/access, coupled with lender confidence. As always, the key in any successful property sale is prudent pricing and quality presentation.
If you were to departmentalise the potential buyers into active farmers, lifestyle buyers, investors and environmental organisations, we are still seeing interest from each category. Active farmers are continuing to grow their businesses, whilst working with their accountants, solicitors, and ourselves as agents, to try and minimise the approaching inheritance tax burden. The ever present demand for lifestyle farms and the desire to find space, privacy and solitude for the family’s personal health and well-being remains a principle aim of many purchasers relocating to the south west. In living here, we can often take for granted the fantastic countryside, our relatively safe surroundings and relaxed lifestyle. While investment in land and farms may slow, we are still experiencing demand from the environmental sector for tree planting, carbon off-setting, carbon sequestration and rewilding, and these are likely to have an increasing influence on land values in the years ahead. Of course, smaller land parcels generally sell to non-farming buyers, with a whole raft of weird and wonderful potential end use ideas.
First impressions count! Rural properties tend to look at their very best in the spring and summer months and in anticipation of this we are currently launching a number of new farms and smallholdings across the depth and breadth of Devon, Somerset and Dorset. Thus far we have been very pleased with the response, with a strong level of enquiries from prospective purchasers seeking good quality large commercial farms, attractive residential smallholdings and parcels of land. If this interest continues it could bode well for those farmers and landowners who may ultimately decide to come to the market in 2025. Of course, the simple age-old adage of ‘they don’t make it any more’ could also be one of the underlining themes as to why prices remain firm.
If you are considering selling agricultural assets then please book a valuation or contact your local specialist rural agent. You can also watch a video about our Farm Agency service.
Despite the political changes we keep having to endure in the agricultural sector, most farmers are still keen to secure and grow their farms for future generations. In the current climate, some of the older generation may decide it is time to ‘hang up their boots’, which may result in some potential sales, especially with the future tax reliefs being significantly reduced. Capital grants and environmental schemes have been more important of late, but there is current uncertainty in some of those areas. On a more positive note, agricultural commodity prices have generally remained buoyant, helping to reassure buyers. Will all this result in more farms and land coming to the market?
Whilst it’s probably too early to predict, the majority of our current sales are being driven by the common themes of downsizing/ upsizing, retirement and probate, and there is certainly no sign of any panic as a result of the government changes. Whether this is still to come only time will tell. Undoubtedly, some of the main factors that will be key in determining farm and land values over the next year or two will be level of supply and location/access, coupled with lender confidence. As always, the key in any successful property sale is prudent pricing and quality presentation.
If you were to departmentalise the potential buyers into active farmers, lifestyle buyers, investors and environmental organisations, we are still seeing interest from each category. Active farmers are continuing to grow their businesses, whilst working with their accountants, solicitors, and ourselves as agents, to try and minimise the approaching inheritance tax burden. The ever present demand for lifestyle farms and the desire to find space, privacy and solitude for the family’s personal health and well-being remains a principle aim of many purchasers relocating to the south west. In living here, we can often take for granted the fantastic countryside, our relatively safe surroundings and relaxed lifestyle. While investment in land and farms may slow, we are still experiencing demand from the environmental sector for tree planting, carbon off-setting, carbon sequestration and rewilding, and these are likely to have an increasing influence on land values in the years ahead. Of course, smaller land parcels generally sell to non-farming buyers, with a whole raft of weird and wonderful potential end use ideas.
First impressions count! Rural properties tend to look at their very best in the spring and summer months and in anticipation of this we are currently launching a number of new farms and smallholdings across the depth and breadth of Devon, Somerset and Dorset. Thus far we have been very pleased with the response, with a strong level of enquiries from prospective purchasers seeking good quality large commercial farms, attractive residential smallholdings and parcels of land. If this interest continues it could bode well for those farmers and landowners who may ultimately decide to come to the market in 2025. Of course, the simple age-old adage of ‘they don’t make it any more’ could also be one of the underlining themes as to why prices remain firm.
If you are considering selling agricultural assets then please book a valuation or contact your local specialist rural agent. You can also watch a video about our Farm Agency service.