Land market data demonstrates need to avoid ‘kneejerk’ policymaking

Press Release

Scottish Land & Estates, the rural business organisation, has said a new rural land market report demonstrates the need to avoid a ‘kneejerk policy reaction’ to short term market trends.

Published by the Scottish Land Commission (SLC), the Rural Land Market Report draws on data from the Registers of Scotland and the wider industry to evaluate the land market and property values across the country, focusing on farms, forests, and estates.

A total of 199 land sales took place in 2023, with 140 of those transactions categorised as farmland, and 22 as estates.

Thirty seven sales were for forestry, a land use which had previously been identified as causing a significant increase in land prices, particularly in the south west.

In 2023, the number, area, and value of forestry sales decreased from the previous highs, with the total area sold dropping by 54% compared to 2022.

SLE welcomed publication of the data and said it demonstrated the active market for buyers and sellers despite a slight decrease in the volume of transactions.

Sarah-Jane Laing, chief executive of Scottish Land & Estates, said:

“The data clearly shows the diversity of the active Scottish land market, especially in the farmland sector, where buyers and sellers are actively engaging in transactions of various sizes and values. 

“While the rise in land prices following the pandemic has been cited as a key reason for the push for new land reform legislation, this report highlights that short-term fluctuations should not drive such decisions. A deeper understanding of land economics and the factors behind transactions is essential to prevent policymakers from making kneejerk decisions that could harm rural Scotland in the long run. 

“Moreover, the Scottish Government and its agencies are significant players in the land market, and their influence on land prices, along with the impact of funding and policy, is not always appreciated or understood. 

“The proposed land reform bill risks discouraging investment in rural businesses and could lead to a reduction in land sales due to the bureaucratic burdens it would introduce. We strongly urge the Scottish Government and politicians from all parties to collaborate with rural businesses to create a policy framework that truly supports rural communities and economies and ensures a future sustainable land market.”