5. Conclusion
This report has documented land agent and valuer perspectives of how the Scottish land market performed in the calendar year of 2025. It is now the fifth report in the series which has tracked these markets since 2021.
The 2025 land market can be characterised as subdued, cautious, and undergoing a period of adjustment following previous highs. Across sectors, agents consistently described a slower and more selective market, with reduced transaction volumes and longer deal timelines. While supply and demand appear broadly balanced, this equilibrium has been reached at lower levels of activity, reflecting weakened buyer confidence and a more constrained pool of participants. Macro-economic pressures, including higher interest rates, inflation, and wider political uncertainty, have played a significant role in shaping this more cautious market environment.
The forestry and natural capital markets have experienced the most pronounced slowdown, driven by declining investor confidence, lower timber prices, uncertainty around carbon values, and challenges in regulatory and approval processes. In contrast, the farmland sector has demonstrated relative resilience, with demand from expanding farming businesses underpinning activity despite lower overall volumes. Lifestyle and amenity markets also continue to show pockets of steady demand, although these too have softened.
Policy and regulatory changes—particularly around land reform and taxation—have added further caution. The impact of the Land Reform (Scotland) Act 2025 appears limited to date, but it has influenced sentiment, timing of sales, and longer-term investment decisions, especially for larger estates and institutional buyers. Similarly, changes to Inheritance Tax have prompted increased valuation activity and strategic thinking among landowners, even if they have not yet translated into significantly higher levels of market supply.
