Ed Blundy: Who Is Buying Farmland in the UK Today?

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The UK farmland market continues to evolve under the pressure of changing tax rules, volatile agricultural economics, and shifting investor appetite. To understand who is buying land today—and why—American Farmland Owner spoke with Ed Blundy, a partner at Brown & Co.

Despite a period of uncertainty surrounding potential changes to inheritance tax, Blundy said that tax-motivated purchasers remain the backbone of the UK land market.

“The market at the moment is still dominated by the tax buyer, even though there's been lots of tax changes,” he explained.

Blundy pointed specifically to rollover relief, which continues to play a major role in shaping purchasing behavior.

Ed Blundy bio:

• Brown & Co. -- Equity Partner (joined the firm in 2009), Head of ITC on Management Board

• Royal Institution of Chartered Surveyors – Member

• Central Association of Agricultural Valuers – Fellow

• European Valuer

Farmers or landowners involved in development or renewable energy projects who sell land can reinvest to avoid capital gains tax. “If you sell land and end up with a bunch of capital,” Blundy noted, “…that is protected from capital gains if you roll it over into a qualifying asset within three years. So, there are still a lot of those sorts of people in the market buying land.”

It is a similar maneuver that investors use in the United States with 1038 exchanges.

RELATED: Noted farm CPA Paul Neiffer, author of the “Farm CPA Report,” explained to American Farmland Owner earlier this year how 1038 exchanges can benefit farmland owners. 

Possible Tax Changes That Could Affect UK Farmland

There are rumblings in the UK about changes to agricultural property relief and inheritance tax, but some non-farming investors are still active. Blundy called them “a few inheritance tax buyers, bizarrely.”

He pointed out that some individuals outside agriculture see farmland as a relatively tax-efficient asset. “If you… can get 20% tax instead of 40%, then that's 50% better than the alternative,” he said.

In other words, even in a climate of political uncertainty, the tax logic for certain buyers remains compelling.

Institutional Buyers of Farmland in the UK

Beyond private tax-driven buyers, a handful of institutions continue to purchase UK farmland. According to Blundy, “A few UK institutions are still buying. National Grid is buying a bit. The Crown Estate, a few UK pension funds, and charitable trusts are buying land.”

Their motivations vary—from environmental offsetting and infrastructure protection to long-term capital preservation—but they continue to create competition in some regions and for certain land types.

Most Local Farmers Aren’t Buying Additional Farmland in the UK

The more complicated story involves farmers themselves, who are the traditional core of the land market.

When asked if the local farming community is buying land right now, Blundy was clear: “Not so much would be the answer.”

Some well-capitalized farmers who accumulated reserves during profitable recent years are still in the market, particularly in regions where opportunities to expand have historically been limited. These producers, Blundy notes, “have got the cash to buy.”

But the picture changes dramatically when borrowing enters the equation.

The Psychological Barrier of Higher Borrowing Costs

Interest rates have come down from their post-COVID peak, but the leap from a decade of near-zero borrowing costs has left many farmers hesitant.

Blundy captured the mindset shift bluntly: “For the last ten years, I've been able to borrow at nothing. Now it's going to cost me five percent or four percent.”

The challenge, he explained, is not just financial but psychological. “That's been a psychological hurdle for a lot of people,” Blundy explained.

This burden is felt not just by younger farmers, but by the older majority as well. “The average age of a farmer in the UK is 60-something,” he said.

 Those who entered farming post-COVID, when rates were still historically low, have also struggled to adjust. For them, he said, “a 500 percent increase… was difficult to get your head around.”

Struggling Farmer Confidence in UK

Borrowing costs are only one piece of a wider, more troubling landscape for UK farmers. Blundy outlined a complex convergence of pressures that are weighing heavily on confidence:

• “Low commodity prices”

• “Agflation”

• “A drought, followed by a dry winter last year… this winter really needs to be a wet one.”

• “Loss of government support” (and uncertainty around replacement funding)

• “The migration away from ag of the next generation”

• Potential tax reforms impacting landowners

With this backdrop, many farmers are reconsidering expansion altogether. “Some farmers [are] saying, ‘What's the point? Is it worth it? Do I really want to go and borrow another million pounds when I'm worried about serviceability?’”

UK Farmers Staying in the Market

Blundy emphasized that there will always be a top tier of operators willing and able to seize opportunities. “There are some really, really good people in this industry. The appetite for risk… is still there,” he said.

But for the broad middle-- “the 80 percent” -- the current conditions present serious challenges. Some may choose to exit the industry altogether.

“I suspect that is inevitable one way or another,” Blundy concluded.

Taken together, today’s farmland market is shaped by tax-driven buyers, selective institutional players, and a cautious, financially pressured farming community. While opportunities remain, confidence is fragile. And for many UK farmers, the question is no longer whether they can buy land, but whether they should.