It was a year marked by political noise and policy uncertainty, but the Scottish farmland market emerged from 2025 on a solid footing, according to Strutt & Parker’s annual report.
Douglas Orr, farm agent for Strutt & Parker in Scotland says: “2025 was a year that will stick in the mind for some time, due to the noise and external pressures which created a sense of uncertainty in the market.
“The Land Reform Bill, which will give Ministers new powers to intervene in land sales over 1,000ha (2,470 acres), and the proposed changes to inheritance tax both had an impact on market sentiment. Indeed, the latter was a driver for several sales, as businesses looked to restructure and sell off outlying assets.
“However, overall farmland values held firm, supported by steady demand and reduced levels of supply. Regional price variation remains significant, but prime arable land in East Lothian, Fife and Angus remained the strongest performing sector, with prices of over £10,000 per acre being achieved consistently and up to £15,000/acre being paid for farms with scale, soil quality and good infrastructure. The value of hill ground was more unpredictable, with reduced demand from forestry funds and natural capital investors, but this did create opportunities for farmer buyers.”
A total of 28,000 acres were publicly marketed in 2025, which is fewer than in 2024 and below the five-year average. Supply dropped in all regions apart from the Lothians and West Scotland, with the sharpest reduction seen in the North East of Scotland.
Out of the 82 farms publicly marketed, 84% were under 500 acres. There was a slight increase in the proportion of farms of over 500 acres. There was only one block of hill ground marketed in excess of the Land Reform Bill threshold of 2,470 acres.
At the same time, Strutt & Parker’s analysis shows that demand was firm across all farm sizes, regions and price points. While there was generally less competition for farms than three years ago, 88% of the farms marketed during the first half of 2025 were either under offer or had missives concluded by 31 December. This is a substantial increase on the equivalent figure for 2024 (76%) and in line with the strongest years of the past decade.
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Farmers remain the most active buyer group, with many seeking to expand or restructure existing businesses to improve efficiency and long-term resilience.
Looking ahead, Mr Orr says the outlook for the Scottish market is broadly positive.
“Early signs suggest a similar level of activity heading into 2026, and while agricultural policy and funding uncertainty persists, the market’s underlying fundamentals remain sound. Provided we see no significant economic or policy shocks, values are expected to remain firm, with well-located and productive farms continuing to attract serious interest. In a year shaped by change, Scotland’s farmland market has once again demonstrated its resilience and remains a good long-term opportunity for landowners, farmers and investors.”
