What's really driving farmland sales in 2026 – and what role is tax playing?

Despite predictions that inheritance tax changes would lead to a surge in farmland sales, the reality has been more complex. Charlie Bryant, head of the national farm agency department at Brown&Co, explains what's really influencing landowners' decisions to sell.

When changes to inheritance tax (IHT) were first announced in the 2024 Autumn Budget, there were widespread predictions that farmland would flood onto the market as owners sought to reduce their future tax liabilities.

Two years on, however, Charlie says Brown&Co has seen little evidence of landowners selling solely because of the reforms. 

"Some of the land coming onto the market may have been influenced by the IHT changes, but there has been a perfect storm of other factors," he explains.

"Commercial returns from farming have generally been poor for a number of years, putting businesses under significant financial pressure and making continuing farming less attractive.
"In some cases, the next generation has already pursued a career away from the farm, leaving no obvious successor.

"At the same time, farmland values have held relatively firm, making selling a more attractive option."

Tax may be a catalyst, but rarely the sole reason

The IHT reforms, introduced in April 2026, reduced the agricultural and business property reliefs available on qualifying assets above the relevant threshold.

While the changes have prompted many farming families to review their succession and estate planning arrangements, Charlie believes they have often accelerated decisions that were already being considered, rather than creating an entirely new reason to sell.

"Despite the common view that we were going to see a lot of land come to the market, Brown&Co has seen little evidence of land disposals purely to reduce IHT exposure," he says.

"We've seen some families redistribute assets between family members, but surprisingly few people transferred land or sold when the change to IHT was made. Everyone talked about it, everyone knew about it, but very few actually did anything about it."

However, Charlie cautions that the full impact of the reforms has yet to emerge, with estates affected since April 2026 still working through probate.

The wider pressures influencing farmland sales

For many farming businesses, decisions about whether to sell land are being shaped by a combination of financial pressures, family circumstances and longer-term plans.

Where profitability has been under pressure for several years, selling some or all of a farm may provide an opportunity to release capital, while succession can be a deciding factor where there is no clear plan for the next generation to take over.

Meanwhile, relatively firm farmland values mean that selling can remain an attractive option for those considering their future.

These underlying pressures are unlikely to disappear, regardless of whether further changes to IHT are announced in the Autumn Budget.

"The other reasons for selling haven't changed; farming profitability remains under pressure, succession is still an issue and landowners will continue to make decisions based on their circumstances," Charlie explains.

Looking beyond the Budget

With speculation continuing about whether the government will amend the IHT reforms, the forthcoming Budget remains an important consideration for farming families.

However, Charlie believes decisions about the future of a farm should be guided by the wider needs of the business and family, rather than tax considerations alone.

"Tax is clearly an important consideration, but it shouldn't be the only factor driving a decision to sell. For most farming families, the bigger questions are still about profitability, succession and what they want to achieve from the farm in the longer term."

For landowners considering their options, understanding the current farmland market, potential buyer demand and the implications of selling can help inform those longer-term decisions.
Considering selling farmland?

Brown&Co's national farm agency team advises landowners on farm and land sales, drawing on local market knowledge and wider buyer connections to help clients understand their options.

Contact your local office