SLE responds to Scottish Land Commission's 2026 Rural Land Market report

Press Release

Scottish Land & Estates, the rural business organisation, has issued the following response to the Scottish Land Commission’s Rural Land Market Insights Report 2026, which explores trends in land sales across Scotland.

Stephen Young, Director of Policy at Scottish Land & Estates, said: “This latest report provides a useful snapshot of activity in Scotland’s rural land market, drawing on insight from agents and property professionals. Its real value, however, lies in what can now be understood from a sequence of reports over several years.

“What is increasingly clear is that the very high land values seen between 2020 and 2022 were an outlier. That period was heavily influenced by a surge in natural capital interest, alongside the impact of the Covid pandemic, which made land an attractive purchase for a wider range of buyers.

“We urged caution at the time about drawing sweeping conclusions from a limited and unusual period in the market. However, the Scottish Land Commission used those findings to argue for further legislative intervention, and we have since seen the passage of a new Land Reform Act alongside a series of wider government interventions. As highlighted in the report, the effects of these major interventions have yet to be felt.

“As the Commission now acknowledges, there are a range of factors affecting confidence to invest in land. Whilst some may view a decrease in land prices and transactions as a positive, the reality is that it has a very real impact on the economy, especially in rural areas, and on Scottish Government policy targets – particularly on climate mitigation and nature restoration.

“In 2024/25, Scotland created 8,470 hectares of new forest and woodland - almost 10,000 hectares below the target set under the Climate Change Plan for that year. Reductions in public funding for woodland creation played a role, but so too has the policy environment created by both the Scottish and UK governments, which has made private investment in Scotland’s land less attractive.

“That has direct consequences for the growth of the forestry sector, which contributes £1.1 billion in GVA to Scotland’s economy each year, as well as for wider land-based investment in housing, renewables, nature restoration and rural enterprise.

“With the Land Reform Act now passed, and the prospect of enforced lotting and prior notification hanging over the market, it is difficult to see how many investors will view Scotland’s land market as a confident proposition in the years ahead.

“One positive aspect of the report is the continuing steady activity in farmland sales. However, the UK Government’s punitive APR and BPR proposals have changed the outlook for many family farming businesses. Opportunities to acquire land do still exist, but we are likely to see some businesses expand while others contract, as scale becomes an increasingly important factor in long-term viability.

“Scotland needs a land market that is transparent, trusted and capable of attracting responsible long-term investment. That will not be achieved by treating investment as a problem to be managed, but by creating a policy environment that gives rural businesses the confidence to deliver.”