The property and land market initially entered 2026 with improved stability and growing confidence among both buyers and sellers. It was underpinned by reduced interest rates, greater clarity on Inheritance Tax (IHT) policy, and a more settled economic backdrop. However, there is now a little more caution due to the conflict in the Middle East, which is causing higher input costs and lending rates. Nevertheless, buyers are still more active than they were this time last year.
Property demand is strengthening
Overall, demand is strengthening, with buyer enquiries starting earlier this spring than in 2025, and volumes expected to remain broadly in line with recent levels. Supported by increased market confidence, we anticipate property prices will hold firm, but it is worth emphasising that location and asset quality remain critical determinants of value and marketability.
Vendors who have held back, have taken time to ensure their farms are presented in good order ahead of sale, positively influencing initial buyer impressions and supporting competitive interest.
Land is still viewed as a secure investment
Agricultural land continues to be viewed as a secure, tangible investment, and supply levels are likely to remain consistent. Land values are expected to remain resilient, with limited impact arising from recent IHT policy announcements. However, it is also worth noting that demand from natural capital and carbon-focused investors has softened compared to previous periods.
Lending conditions remain supportive for land-based assets where financial fundamentals are robust. However, lenders are applying increased scrutiny to more marginal businesses, and also within the dairy sector, where income volatility and milk price pressures persist.
Development-led opportunities
We have seen a sustained appetite for development-led opportunities, although higher build costs remain a key concern for developers. Nevertheless, farms with land adjacent to populations are still keen to explore their options with us.
If you are considering buying or selling this year, contact Chris Edmunds, Will Dalrymple or our Agency team for a confidential, no-obligation discussion on 0131 449 6212 (Scotland) or 01900 268 633 (England)
