Factors affecting the UK Land Market

The UK land market enters 2026 under pressure from low commodity prices and challenging weather conditions.

Many growers are operating in a difficult stage of the commodity cycle, with crop prices in numerous cases falling below the cost of production. This has tightened margins further following a dry 2025, when annual rainfall totalled just 520mm, 23% below the long‑term average of 675mm. The year ended with an exceptionally wet November, during which 25% of the annual rainfall fell, disrupting fieldwork and planning.

Major policy developments also shaped the landscape. Agricultural Property Relief (a UK tax incentive that reduces Inheritance Tax) dominated headlines after proposals for a 20% tax on assets above £1m caused alarm across rural communities. Although the government initially resisted engagement and defended its modelling, it later reversed course, reinstating inter‑spousal transfers and increasing the threshold to £2.5m per person. These adjustments will support many families, but a significant proportion argue the changes do not go far enough, and campaigning for full relief is expected to continue. With valuations set to determine tax liabilities for the first time in decades, the role of agricultural valuers will become increasingly important in 2026.

Across the sector, rural professionals remain busy with routine agency and valuation work alongside a growing number of infrastructure schemes involving roads, rail, utilities, energy and telecommunications. Each project brings complex requirements for land, agreements and conflict management. Market activity also remained strong in farm machinery, with 2025 marking a record year for Brown&Co’s sales both on‑site and online. Demand for well‑maintained second‑hand equipment persists as new machinery prices continue to rise, and tighter farm margins may drive further sales in 2026.

A recent machinery auction held by Brown&Co in Cambridgeshire, UK.

Internationally, Brown&Co’s work continues to expand, as members of the International Ag Alliance, with work in emerging Ag markets such as Mexico and Paraguay, as well as Central Europe.

To find out more about the International Ag Alliance, click below.

International Ag Alliance