Land Price per Acre in the UK & How to Estimate Value
Complete guide to UK land prices per acre in 2025. Learn regional variations, land types, and use our calculator for accurate valuations.
Executive Summary
Key Findings
- • UK land values per acre exhibit significant regional and land-type variation
- • Prime arable land in the south commands £12,000-£16,000/acre
- • Pasture and peripheral regions trade below £8,000/acre
- • +229% appreciation over 20 years; +12.6% over 5 years
- • Q1 2025 correction: 1.9% YoY decline to £9,072/acre average
Table of Contents
Land Types and Their Values
Across England and Wales, land type fundamentally drives pricing. Understanding these categories is crucial for accurate valuation.
Arable Land (Grade 1–3)
Best-quality, tillable soils with prime agricultural potential.
Pasture & Grassland
Lower fertility, primarily used for grazing and livestock.
Woodland & Mixed
Reflects both timber value and amenity use potential.
Residential-Potential Sites
Values can skyrocket in commuter belts with planning permission.
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Estimated Value
Value Range
Note: This is an estimate based on current market data. Professional valuation recommended for accurate pricing.
Regional Price Variation
Land prices follow a clear north–south gradient and vary within regions according to soil quality, accessibility, and diversification prospects.
| Region | Arable (£/acre) | Pasture (£/acre) | Notes |
|---|---|---|---|
| South West England | 12,000–16,000 | 8,000–12,000 | High-quality soils; tourism, renewables diversification |
| South East England | 10,500–14,000 | 8,500–11,000 | Proximity to London boosts residential potential |
| East of England | ~10,100 | 8,000–9,000 | Prime arable heartland; highest grain yields |
| West Midlands & Midlands | 9,000–13,000 | 7,000–10,000 | Mixed farming; recent large sale at £13,000/acre |
| North West England | 7,700 | 6,000–8,000 | Variable soils; stronger near Lancashire |
| North East England | 7,000–9,000 | 5,500–8,000 | Lower demand, fewer diversification options |
| Yorkshire & the Humber | ~9,130 | 7,500–8,500 | Good arable soils; stronger near urban centres |
| Wales | ~8,641 | 6,500–7,500 | Pastoral focus; upland areas at lower values |
| Scotland | 8,500–11,000 | 4,000–6,000 | Arable fields in Lowlands; sporting estates in Borders |
Historical and Recent Trends
Key Milestones
- • 2024 Peak: Arable peaked at £11,300/acre, pasture at £9,100/acre
- • 2025 Correction: Q1 bare land down 1.9% YoY to £9,072/acre
- • Market Factors: Tax-policy uncertainty and environmental scheme pauses
- • Supply Constraints: Only 9,600 acres marketed in Q1 2025 despite 20% above five-year average
Drivers of Value
Soil Grade & Drainage
Grade 1–2 arable land commands 20–30% premiums over lower grades. Drainage quality significantly impacts agricultural potential.
Supply Constraints
Limited listings create scarcity premiums. Only 9,600 acres marketed in Q1 2025 despite high demand, maintaining upward pressure on prices.
Natural-Capital Schemes
Carbon credits and biodiversity offsets elevate values for ecologically strategic sites, creating new revenue streams beyond agriculture.
Inheritance-Tax Reforms
Possible April 2026 changes create uncertainty but haven't yet dampened demand. Watchpoint for future market dynamics.
Diversification Potential
Renewable energy, tourism, and residential conversions drive premiums, especially near urban fringes and transport links.
Location & Access
Proximity to markets, transport infrastructure, and urban centres significantly impacts land values and development potential.
How to Estimate Land Value
Step-by-Step Valuation Process
1. Identify Land Type
- • Determine soil grade (1-5)
- • Assess drainage quality
- • Check agricultural potential
- • Evaluate diversification options
2. Research Regional Prices
- • Use regional averages as baseline
- • Check recent comparable sales
- • Consider local market conditions
- • Factor in seasonal variations
3. Apply Adjustments
- • Add premiums for Grade 1-2 soils
- • Adjust for access and infrastructure
- • Consider planning potential
- • Factor in environmental schemes
4. Final Valuation
- • Calculate per-acre value
- • Apply to total acreage
- • Consider market timing
- • Get professional appraisal
Comparable Sales Method
Research recent sales of similar land in the area. Look for properties with comparable:
- • Soil type and grade
- • Size and shape
- • Access and infrastructure
- • Planning potential
Income Capitalisation
Calculate value based on potential rental income or agricultural productivity:
- • Annual rental income
- • Agricultural yield potential
- • Diversification income
- • Capitalisation rates (3-5%)
Development Potential
For land with planning potential, consider:
- • Planning permission status
- • Development density
- • Infrastructure requirements
- • Market demand for housing
Market Outlook
Short-Term (2025-2026)
- • Stabilisation: Values likely to hover near current levels through 2025
- • Selective Correction: Pockets of correction where supply rises
- • Policy Impact: IHT reforms in 2026 could unlock more supply
- • Environmental Focus: Natural-capital schemes expected to grow
Long-Term Trends
- • Sustainability Premium: Environmental schemes underpin niche value growth
- • Urban Pressure: Continued demand near urban fringes
- • Diversification: Renewable energy and tourism opportunities
- • Supply Constraints: Limited land availability maintains scarcity premiums
Key Watchpoints
Conclusion
UK land prices per acre remain robust but heterogeneous. Investors and landowners must consider region, land type, policy shifts, and diversification potential when valuing or marketing land assets.
Key Takeaways
- • Regional variation is significant (£5,000-£16,000/acre)
- • Land type drives fundamental pricing differences
- • Long-term appreciation remains strong (+229% over 20 years)
- • Environmental schemes create new value drivers
- • Professional valuation recommended for accuracy
Next Steps
- • Monitor auction and private-treaty data
- • Track emerging environmental markets
- • Consider diversification opportunities
- • Stay informed on policy developments
- • Engage professional valuers for major decisions
Sources & References
Primary Sources:
- • Strutt & Parker Spring 2025 Review
- • Knight Frank Farmland Index Q1 2025
- • Farmers Weekly Land Market Analysis
- • Approved Planning "How Much is 1 Acre of Land Worth UK (2025)?"
Additional Resources:
- • HM Land Registry data and statistics
- • Royal Institution of Chartered Surveyors (RICS) guidance
- • Agricultural Land Classification (ALC) system
- • Environmental Land Management (ELM) scheme information
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