Insight

Scottish Land Reforms: What Landowners Need to Know

07.3.25

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Scotland’s land reform agenda continues to be in the spotlight, with the Scottish Government’s Net Zero, Energy and Transport Committee having concluded its Stage 1 evidence hearings from various stakeholders on the Land Reform Bill.

A vote on whether the Bill should now move to Stage 2 or not is expected by no later than 28th March 2025.

The reforms aim to diversify land ownership, making more land available to a greater number of people rather than it being concentrated in the hands of a few. However, while the Government’s social aspirations are clear, the practical implications for landowners are complex and require careful consideration.

Contributors:

A Shift in Responsibility to Landowners

One of the key elements of the proposed reforms is the increased responsibility placed on landowners. Under the new framework, landowners will be required to produce a formal land management plan, outlining how they intend to use and develop their land in line with broader social and environmental goals. This requirement ensures transparency and accountability but also places a greater administrative and strategic burden on landowners.

For many, this will mean engaging in a detailed review of their landholding, considering factors such as community benefit, economic productivity, and environmental stewardship. The expectation is that landowners will take a proactive approach in aligning their land management strategies with Government objectives, particularly regarding climate change and biodiversity.

The Impact of Rising Land Values

The Government’s vision for a more inclusive model of land ownership faces a major economic hurdle: rising land values. Over recent years, land prices have risen due to growing demand for carbon credits and the Government's ambition to meet stringent climate targets. This trend has made land a highly valuable asset, which could complicate efforts to redistribute it more widely.

For landowners, this presents both an opportunity and a challenge. While land appreciation may enhance the financial worth of their holdings, it also makes selling or restructuring land use more complex. Many landowners are now caught between Government-led expectations for redistribution and the economic realities of a rising land market driven by external factors such as net-zero commitments and carbon sequestration projects.

Fragmentation and Environmental Goals

Another critical consideration is the potential impact of land redistribution on environmental initiatives being able to deliver at the necessary scale. Such environmental projects often require extensive, contiguous land areas to be effective. If land reform leads to increased fragmentation, with more individual landowners controlling smaller plots, achieving these environmental goals could become significantly more difficult.

Coordinating multiple landowners to agree on a collective environmental strategy may prove far more challenging than working with a single large landholder. This issue raises important questions about how Scotland can balance its desire for a more diverse landownership structure with the practicalities of delivering large-scale sustainability projects.

Navigating change 

Given the complexity of these reforms, landowners should seek professional advice to navigate the changing landscape effectively. Engaging with experts will be crucial in developing a robust management plan which complies with the new regulations while also protecting the long-term viability of landholdings.

With land reform set to bring substantial changes, now is the time for landowners to prepare. By staying informed, they can ensure they are well-positioned to meet new obligations while making the most of the opportunities which lie ahead.

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Finlay Clark

Finlay Clark

Head of Energy & Climate

Finlay holds great stock in developing long-term relationships with clients – an ethos which has seen him deliver many high-profile projects.

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Image of Ralph Peters

Ralph Peters

Head of Rural, Scotland

A firm but fair approach has earned Ralph the enviable reputation as the ‘go to’ expert on rural property issues.

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Contributors:

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