Falling demand signals shift in Scotland’s rural land market
Scotland’s rural land market is showing signs of cooling, with falling demand in key sectors such as commercial forestry and natural capital investment, according to new analysis from the Scottish Land Commission and SRUC.
Set to be published on Friday 20th June, the latest Land Market Insights Report reveals how economic and political uncertainty have reshaped rural land market activity over the past year. Now in its fourth edition, the 2025 report draws on interviews with land agents across Scotland to uncover the key trends influencing land sales and investment decisions in 2024.
While farmland sales remained steady, the report finds that demand in key sectors such as commercial forestry and natural capital investment continued to fall, largely due to economic uncertainty and market disruption.
The report also highlights:
Forestry: Lower timber prices and wider caution in the sector continued to suppress demand, with ripple effects across the market.
Natural capital: Interest in carbon and environmental projects waned further, with land in existing schemes often seen as overpriced.
Farmland: Arable land continued to attract reliable demand, with some dairy farmers taking advantage of less competition from forestry buyers.
Estates: A split is emerging between large-scale estates suited to environmental use and smaller amenity estates, with the latter more sought after.
Renewables: Developers were increasingly active in pursuing land for wind, solar, battery storage, and compensatory environmental schemes.
Dr Ian Merrell, Research Fellow at SRUC and lead author of the report, said:
“Now in its fourth year, the report demonstrates the importance of continuing to observe and track the key drivers in the land market. Some patterns that were identified in previous reports are now showing signs of reversal, and new factors which may affect the market have emerged this year.”
James MacKessack-Leitch, Policy and Practice Lead at the Scottish Land Commission, added:
“Understanding how the rural land market is evolving is essential for developing effective land policy in Scotland. This report highlights the growing complexity of the market, shows how different drivers are shaping how land is bought, sold and used, and provides a unique evidence base to help policymakers and those working across the sector make informed decisions.”
“The findings indicate Scottish rural land ownership is becoming more concentrated reinforcing the need for land reform to continue improving transparency, participation, and public value in a changing land market.”
The Land Market Insights Report 2025 will be officially launched at a public panel discussion at the Royal Highland Show on Friday 20th June, where land agents and policy experts will share their reflections on what the trends mean for Scotland’s future land use and investment landscape.
