4.8 Barriers to largescale community landownership
Interviewees were asked about the barriers to largescale community land acquisitions. We heard that while there are many barriers to acquiring and sustaining community landownership of any size, these can often be exacerbated by the scale of a landholding.
Stretched capacity and institutional support
Managing multiple assets with limited resources
Communities often manage multiple assets and priorities with limited resources, a lack of secure income generation, little-to-no staff, and a reliance on volunteers. There was a perception amongst interviewees that communities are increasingly having to manage more assets, many of which are key services to the community and most of which the public sector may have previously been managing:
“we’re seeing a huge volume of communities stepping in because the public sector is stepping back to some extent” (SR 1).
With communities already feeling stretched, many do not have the resources, capacity, staffing nor income generation to consider, let alone manage, more complicated assets such as largescale tracts of land:
There is capacity in communities, but there’s a limit on how far it can go. A lot of that capacity is getting sunk into doing things that are maintaining services rather than taking on new stuff to add value... There isn’t much headroom and much capacity to look at, oh, let’s go and buy a huge woodland because they’ve got very immediate and often multiple responsibilities that are very, you know, communities delivering broadband, petrol pumps. These are essential day-to-day critical services that have to work for the community to function... I’m not saying they haven’t got the ambition that they used to have, but I think they perhaps haven’t got the headspace or the capacity and can’t stretch themselves to take on something that’s maybe more aspirational, which could be transformational in time. They can’t keep all the plates spinning. (SR 1)
If individual groups are being set up to look after individual assets, then you’re going to just eventually run out of volunteers... There are only so many people who have the time and capacity to be on these boards. And if there is such a large, I mean, if there’s so many things in community ownership, will we actually run out of the capacity for communities to take on assets? And the answer is yes. (SR 4)
Divided opinion among some communities on whether, and how, to pursue acquisition places further strains this capacity. One survey respondent discussed the requirements of balloting with community members and how to navigate competing interests in where to focus efforts.
Navigating the land market
Land values
Land values are a key barrier to largescale community land acquisition, prohibiting acquisitions most acutely in areas where land is more expensive. The challenge of sourcing financing for such purchases has become more difficult in recent years. One respondent stated, in response to a perceived reduction in demand:
“It definitely has a lot to do with land values [which] have made life increasingly difficult... It is increasingly difficult to buy substantial amounts of land… The proportion of Scotland that is kind of not accessible through the Scottish Land Fund has increased very significantly, I would suggest, in [the past] 25 years” (SR 2).
This sentiment was echoed by others in that the financial support available to purchase land has not matched this increase in land values. This is further complicated by the number of off-market sales:
“Land is still being sold in terms of off-market sales. It’s going for, in some cases, you know, some people are paying ridiculous amounts of money to buy very unproductive, commercially unproductive land. And communities can’t compete with that because the Scottish Land Fund can only support communities as a percentage of what the valuation suggests.” (SR 1)
There was a perception that because land values are so high, some communities are not incentivised to consider acquisition, with it feeling out of reach or overly ambitious. The following quote indicates how the issues of cost and community capacity converge on this point:
“The logic of why not pursuing the buyout for the estate is we would have had to raise, with legal costs, well over [redacted number] in a space [redacted time]. How are you going to do that when we have a trust board which is run by volunteers? We have no development officer because there’s no funding for a development officer. So, we have no one employed who could have done that. And even if we did, the chances of them having, you know, it would be witchcraft. It wouldn’t be anything else. The only way you can get that amount of money is alchemy. You’re not going to get it. And the [Scottish] Land Fund was closing. And in terms of community buyout, we started the process, but it never proceeded. So, we hadn’t lodged our interest to buy and putting in a late application fails. It would have been a waste of time. And can you imagine the effort that would have had to go in?” (CR 4)
Limited funding options
There is a perception that acquiring largescale landholdings requires ever greater justification from communities as to why they should receive a significant proportion of the shrinking budget of the Scottish Land Fund. Communities may have significant aspirations for largescale land, but facing multiple barriers means they often proceed with smaller acquisitions:
“It always shook down to potentially buying a smaller piece of land... it was dependent upon what you could raise, and also dependent upon what money was available. We didn’t get very far in finding that money. So, then the discussion didn’t go much further. And we’ve kind of settled on a smaller piece, I suppose that was available that we could get funding for.” (CR 5)
Respondents felt that the limited size of the annual SLF budget negatively impacted community willingness to consider a largescale purchase with a price tag associated:
“A lot of it is to do with community perception. If it costs this much and we can only get that much, what’s the point?” (CR 5).
“Another challenge is within the [Scottish] Land Fund; it’s a fixed budget. So, this current year with the capital budget of five million [pounds] and it’s likely that that will be the budget for next year… And five million pounds, realistically, if you’re buying a big asset, five million pounds doesn’t go far. And that five million pounds is for community asset ownership for the whole of Scotland for a year... the committee have got an impossible position if a large one comes because how do you compare, you know, three churches, two libraries, public toilets, etc, etc, with a land buyout project?” (SR 1)
Those involved in supporting communities through acquisitions are often faced with having to make difficult choices in which groups may have a reasonable chance of acquisition based on their justification for funding:
“Anything more than sort of four or five hectares tends to throw up a couple of alarm bells. Not bad alarm bells but purely to understand the rationale and that that piece of land is actually going to benefit the community” (SR 6).
Furthermore, community organisations struggled to receive the necessary support throughout the buyout process. This was through both the inability to attract sufficient revenue funding to employ a development officer, and a perception that the vital help received from support organisations, such as representative bodies and SLF case officers, was being stretched too thin.
Time
The time taken for communities to negotiate with sellers and raise the necessary funding was also highlighted as a barrier by respondents. Communities often must navigate complex processes in very short timeframes, whilst existing landowners must also navigate their own circumstances if wishing to sell to the local community (CR 7).
“We had no prior warning [about the sale of the land], so the clock was running. The situation really is an absolute impossibility for a community to respond in that timeframe to what’s happening. And the short answer to why aren’t there more community buyouts is partly that, but also partly that a lot of these negotiations are going on in a way that disadvantage communities; they’re excluded from them.” (CR 4)
“You’ve got lots of hoops to jump through and quite rightly as well to demonstrate what it’s all about. But all of that takes a lot to work and takes time, so there’s always caution about the amount of input that’s needed and the amount of time it might take. And that’s also dependent then on the seller waiting. So how can you facilitate that?” (CR 5)
Despite the Community Right to Buy mechanism seeking to support organisations in this situation, many respondents spoke about the difficulty of engaging in the process, with it not necessarily helping with regard to the short timeframes:
“There’s lots of barriers to using Community Right to Buy. And if you’re successful and it’s triggered by the landowner or asset owner offering it for sale, you’ve got a very short window to move. And then you’ve got to apply for the funding. And the funding takes as long as the window that’s open.”(SR 1)
This raises wider questions about legislation supporting or inhibiting largescale acquisition, focused on in depth in the next section.
Legislation as “symbolic” and an administrative burden
Interviewees noted the raft of legislative changes over the last 25 years: “
If we fast forward to now, so much has changed. We’ve now got all the legislation in community empowerment, various Land Reform Acts, community asset ownership” (SR 1).
Respondents felt that aspects of land reform legislation have been beneficial in signalling the direction of travel, and indeed that certain largescale acquisitions would not have happened were it not for them. However, it was considered limited in its ability to enable further largescale acquisition, with communities still having to navigate complex processes and face administrative burdens.
Community Right to Buy
Respondents perceived barriers within the Community Right to Buy process that limit its ability to facilitate largescale community land acquisition:
“The perceived problems with the legislation, the Community Right to Buy, which was used in the early days a bit more liberally, either the use of it or the threat of the use of it was useful, but Community Land Scotland research, amongst others, sort of shows that that’s much more difficult these days to get through, and there hasn’t been a successful Community Right to Buy acquisition for years, apparently. So, despite the fact we’ve got this very progressive legislation, it’s not really working. (SR 5)
Demand for the big buyouts is usually killed at the end of the first conversation because the communities who want to do the big buyouts are almost always inquiring about being able to do a late registration using Community Right to Buy. And like I would never say to community don’t try, but you have to be realistic. There hasn’t been a successful one for a very long time... Communities say is that it’s very complicated, so you don’t know who to go to. And so, communities can be quite kind of tired by the time they get to the right support. (SR 3)
Additionally, interviewees reported that the two-stage process of a Community Right to Buy is cumbersome, and communities often have to make a “gamble” (SR 2) on the one asset they wish to register for without knowledge of whether that particular asset will actually go on sale. This contributes to perceptions that navigating legislative processes is arduous and unlikely to result in success.
Whilst the mechanisms of Community Right to Buy are currently in review, there was a feeling that changes in legislation and the wider policy context might limit community appetite to consider largescale acquisitions:
“there’s also a hesitation because of legislative change or the anticipation of legislative change...communities have maybe held back and just to see what the legislation is going to bring them”. (SR 5)
In addition to a perception that existing legislative mechanisms are not as effective as they could be, there was a sense of a lack of substantive legislation to tackle the structural barriers to largescale community acquisition, such as inflated land prices and intransigent landowners.
Power dynamics and landowner influence
The relationships between landowners and communities influence the experience and success of a buyout. One respondent noted that “the vast majority of projects or acquisitions, be it land or buildings, occur through negotiations” (SR 1). Some interviewees felt the profile of landowners has possibly shifted over time in positive ways, with many landowners now more sensitive to community interests and pressure than several decades ago:
"The profile or their attitude has changed a bit, partly because maybe got rid of some of the worst ones, or the ones who are least kind of proactive. But actually, you possibly have a slightly more proactive cadre of large landowners who increasingly see actual opportunities in management and development of that land.” (SR 2)
In most instances, the success of a buyout hinges on there being a willing seller, one who is open to conversing with community members and, in some cases, can wait for the community to pull together resources to complete a sale. We heard positive experiences from interviewees about existing landowners and their open conversations with community members to consider a largescale acquisition. In the following example, the community had not considered community ownership as a possibility until the seller prompted a discussion with them:
I think the fact that they approached the community first was quite telling. I think they were certainly motivated to see it come under community landownership. It would have been very easy for them to say “I’m just going to stick this on the open market and what will be will be” type idea. But I think they’ve got a vested interest. (CR 1).
We also heard of another landowner who has been considering transferring an estate to the local community, moving through a “long process” of doing so (CR 7).
While these negotiations appear constructive, this may not be the case for all communities. Should there be a seller unwilling to work with an interested community, communities felt unable to progress with an acquisition, even if they had the funds, resources, and capacity to do so. Negotiating with the seller was considered one of the biggest barriers to largescale acquisition, especially in the face of “a lack of communication and negativity in refusing to work with the community” (survey respondent). A representative from another community said that their relationship with the previous landowner was strained, and when the estate came up for sale, the community felt they had “no avenues. No power. We have no voice”, describing the landowner as “antagonistic” (CR 4).
Perception of the future viability of landholding
The responsibility of the landholding
The characteristics of a landholding itself can be a barrier to communities wishing to pursue largescale community land acquisition, with a “huge difference between purchasing 10,000 acres to purchasing a building” (survey respondent). Communities, and supporting organisations, are more wary if the landholding is more complex; for example, if it includes significant hectarage, contains buildings and tenancy agreements and encompasses designated sites such as SSSIs:
Taking on a large lump of land without any buildings on it is a very different risk profile from taking on land that has a lot of buildings or a large house that needs maintained... I think there are a band of community landowners that have significant responsibilities because they own land on which people live (SR 4).
Communities felt that some estates are so large and have been so poorly managed that they would require significant and possibly insurmountable investment, especially estates which are “cash poor, and have been for a long time” (CR 7). This was a barrier to the community wishing to pursue an acquisition in the first place, with one interviewee highlighted the difficulty of sustaining future income generation:
“Keeping ruins is expensive... it’s a very tricky one in terms of looking ahead at opportunities. If you think about this land for carbon sequestration, it’s not that good quality. You’re not going to stick a wind farm in the middle of it… [It is] losing money hand over fist because of lack of investment.” (CR 4)
They stated that if the community did acquire the landholding in its current form, it would be “a whole flock albatross hanging around the community’s neck for years” (CR 4).
Future income generation
When considering an acquisition, communities are often concerned by the perceived lack of income generation opportunities related to the landholding. Some landholdings may have more options for this readily available to them, such as potential for renewable energy, tourism, or housing, while others may not. The potential for renewable energy opportunities was a key theme among interviewees, considering it vital to sustain the finances of the estate post-acquisition:
“There’s nothing really like renewables, unless you have like a gold mine or something…When you’ve got a community estate buyer that’s got good potential to do renewable energy, then that’s really a match made in heaven” (SR 3).
One interviewee clearly stated that the community’s interest and ability to pursue largescale community acquisitions “depends on the buoyancy of what is felt is achievable” (CR 5). If there is no clear viable way to financially sustain a largescale landholding, an acquisition is often seen to be too risky to attempt and so communities may seek to acquire smaller assets, or not at all.
This consideration illustrates the pragmatic and considered way in which many communities approach largescale land acquisitions, and emphasise the complex consideration of ‘demand’ discussed previously.
Barriers within the Scottish Land Fund (SLF)
The SLF has been an enabling force in largescale community landownership since its inception. There was little doubt among respondents about its positive impact. However, respondents outlined some of its limitations.
The main limitation is financial, with the Scottish Government unable to fulfil its pledge to increase its annual budget to £20m by the end of the parliament. Its reduced budget has been acutely felt due to increasing land values:
“[The budget has] reduced in cash terms, then it’s been massively reduced in relative terms because the value of the assets that it’s trying to buy has gone up… [While] it’s very difficult to [have a] bottomless pit of money for the [Scottish] Land Fund, if it doesn’t keep pace with land prices then more and more assets are just outwith scope” (SR 2).
One respondent noted that the limited size of the SLF, and how it pales in comparison to the value of land, can curb the sense of aspiration that the largescale acquisition may even be possible:
We could go back to the community and say, look, the Land Fund was ten million [pounds], now it’s twenty [million pounds], and there’s a chance. Instead, it was like, oh, now it’s down at seven and a half [million pounds], and will they commit to that? You don’t get that sense of optimism... any community now thinking about the Land Fund is going to think, well, there’s not much there anyway, so why bother? Whereas if it was twenty million or forty million [pounds], people might think, well, there’s a good fund there, then it’s worth pursuing that (CR 5).
In some instances, interviewees were unsure about whether the SLF had closed, and were conscious of the difficulty of meeting timeframes for annualised budgets, resulting in some missed opportunities. In addition, respondents expressed that conditions limiting the ability of the community owner to dispose of portions of the landholding limited their long-term viability. This, in addition to limited post-acquisition revenue funding, were considered to unnecessarily disadvantage new largescale community landowners going forward. Respondents also noted a perceived changing culture within the SLF, stating that in recent years there has been “a lot of risk aversion towards land buyouts from the committee” (SR 3). Interviewees also questioned a lack of transparency in the decision-making process, wondering why some buyouts are funded and others are not. There was a perception that the SLF may favour funding certain regions or past recipients over new applicants from under-represented areas.