The Rural Update: Work together for better regulation
Your weekly dose of news, views and insight from Knight Frank on the world of farming, food and landownership.
27 October 2025
Viewpoint
This week’s Rural Update details a number of useful changes that the government has made to the Renters Rights Bill and the Seasonal Worker Scheme, not to mention the desperately needed extension to soon-to-expire Countryside Stewardship Mid-Tier agreements. The CLA and NFU have been lobbying hard for the changes, and it is good that policymakers have listened to their arguments. However, it would have been much better if the expertise of those at the coalface of food and farming had been acknowledged much earlier on. It would also be sensible for the government to heed the warnings on the impact of its Inheritance Tax reforms. If not, there may be fewer farming businesses left to take advantage of these latest changes.
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Commodity markets
Food price inflation
The price of foods hit by extreme weather is rising over four times faster than others, according to new analysis from the Energy & Climate Intelligence Unit. Based on the latest ONS inflation data, the analysis finds that although these items make up just 11% of the average shopping basket, they account for nearly 40% of all food price inflation. Prices for these five foods – butter, beef, milk, coffee and chocolate – have risen by an average of almost 16% over the past year, compared with just 2.8% for other food and drink.
The headline
Farmland market treads water
Around this time last year, Chancellor Rachel Reeves sent shockwaves through the agricultural and business community when she announced that she was reforming Agricultural and Business Property Relief.
Unless the government makes an unexpected U-turn, the changes mean that, from April 2026, many of those inheriting farms and estates will have to pay multi-million-pound Inheritance Tax (IHT) bills they can ill afford, given the current paucity of farming profitability.
With the UK’s fiscal deficit growing and with just four weeks to go until Labour’s second budget on 26th November, property owners are bracing themselves for more bad news. As a result, most are not in a rush to commit to any high-value transactions.
Consequently, the predicted surge in farmland availability has so far failed to materialise. In the third quarter of the year, barely 90,000 acres of agricultural property had been publicly advertised, an increase of only 10% on the same period in 2025.
This period of market stagnation hasn’t, however, dragged down farmland values significantly yet.
According to the Knight Frank Farmland Index, which tracks the value of bare agricultural land in England and Wales, the average price of land fell by just 1.6% to £8,719/acre over the third quarter of the year. That equates to an annual fall of 6.8%.
As ever, the market remains highly localised, and where there is competitive bidding, prices have even been going up in some locations.
The medium-term direction of the market won’t be determined until the New Year, when the consequences of the budget and the IHT reforms start to take effect. If more vendors do make up their minds to sell, values will likely weaken further.
However, farmland has historically followed a pattern of sharp price rises followed by more gradual downturns. There is a strong possibility that the IHT changes could be reversed after the next general election, by which time farmers may well be feeling more confident again.
For more insight and data, please download the full report.
Compulsory purchase move
The CLA is backing an amendment by Lord Cameron of Dillington to the Planning and Infrastructure Bill, currently passing through parliament, that calls for an enforceable code of practice for compulsory purchase and related powers.
CLA President Victoria Vyvyan said: “In some cases, landowners dealing with acquiring authorities and their agents face late payments, bad faith negotiation and unauthorised access.”
“The government has ambitious plans to build, and farmers and landowners can help it deliver, but they must be treated fairly and with respect.”
Please contact Tim Broomhead if you need help with any compulsory purchase or compensation issues.
News in brief
Renters’ Rights Bill passed
Farmers and estates will now be able to regain possession of rented homes to use for incoming workers, whether they are directly or indirectly employed. Until the amendment to the Renters’ Rights Bill, which became law yesterday (27 October), was recently passed, it would only have been possible to gain possession of houses for directly employed staff. For more information on what the bill might mean for you, please contact Jess Waddington.
Mid-tier CSS guidance
Defra has issued more guidance for arable farmers planning to take advantage of the government’s 12-month extension to expiring Countryside Stewardship Mid-Tier agreements. If farmers have already cultivated, or plan to cultivate, some of the land covered by their current agreement, they can apply to have it removed from the extension.
Environmental permits
The government has just announced plans to streamline the use of environmental permits. “Low-risk” activities, such as pre-development site investigation works, the storage of waste materials and drainage operations, will no longer require permits. This could knock up to 16 weeks off the time it takes to start building, reckons the government.
Renters’ Rights Bill
Farmers and estates will now be able to regain possession of rented homes to use for incoming workers, whether they are directly or indirectly employed. Until the amendment to the Renters’ Rights Bill, which will shortly receive Royal Assent, was recently passed, it would only have been possible to gain possession of houses for directly employed staff.
Seasonal worker flexibility
Changes have been made to the Seasonal Worker Scheme, which could make it easier for horticultural businesses to attract staff from overseas. From 11th November, workers will be able to spend up to six months in the UK during a 10-month period, rather than any rolling 12-month period. The NFU had lobbied hard for the extra flexibility.
Trump angers beef farmers
US President Donald Trump has upset beef ranchers, traditionally some of his strongest supporters, by saying he plans to significantly increase the import of tariff-free Argentinian beef to help cut prices. Under the proposals, the amount of beef that could enter the country would quadruple to 80,000 tonnes.
Sign up for Rural Report
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Properties of the week
New Hampshire stud launch
Headley Stud near Thatcham is fresh to the market and the 188-acre property offers exceptional equine and leisure facilities, including an indoor school and an Olympic-size outdoor manège. There are 47 stables plus a separate 11-stable foaling block, 2.15 km of all-weather gallops and 71 acres of post-and-rail paddocks. In terms of accommodation, there is an attractive four-bed farmhouse, a guesthouse, staff accommodation and planning consent for a 16,000 sq ft country house. There are also 104 acres of woodland. The guide price is £8.5 million. For more information, please contact Will Matthews.
Historic Kent estate home to rent
Knight Frank’s Rural Consultancy team in Kent has an intriguing option on offer. Newhouse at Mersham, near Ashford, which was once home to Countess Mountbatten of Burma and Lord Brabourne, is part of the idyllic 2,700-acre Hatch Park Estate. Now available to rent, the nine-bed period property costs £6,995 a month. For more information, please contact Katie Bundle.
Discover more of the farms and estates on the market with Knight Frank
Property markets Q3 2025
Farmland – Prices dip
According to the Knight Frank Farmland Index, which tracks the value of bare agricultural land in England and Wales, the average price of land fell by just 1.6% to £8,719/acre over the third quarter of the year. That equates to an annual fall of 6.8%. As ever, the market remains highly localised, and where there is competitive bidding, prices have even been going up in some locations. Download the full report for more insight and data.
Country houses – Budget uncertainty
The average price of country houses has fallen by 5.4% so far this year, according to the Q3 edition of the Knight Frank Prime Country House Index. Properties worth below £1 million dropped by 4.7%, while those worth over £1 million lost 6.7% of their value. Owners of higher-priced properties are particularly concerned about any further property taxes being announced by Rachel Reeves as part of her Autumn 2025 Budget, which is due to be delivered at the end of November, points out Tom Bill, Head of UK Residential Research.
