Scottish Land & Estates on Rural Land Market Insights Report

The report examines trends in rural land sales across Scotland and draws on evidence from land agents and property professionals. While acknowledging the value of the latest findings, SLE said the longer-term picture emerging from several years of reports is more significant.

Stephen Young, director of policy at the rural business organisation, said the exceptionally high land values recorded between 2020 and 2022 should be viewed as an anomaly rather than the norm.

He argued that the period was heavily influenced by a surge in interest in natural capital investment and the effects of the Covid-19 pandemic, which encouraged a wider range of buyers to enter the market.

"What is increasingly clear is that the very high land values seen between 2020 and 2022 were an outlier," Mr Young said.

"We urged caution at the time about drawing sweeping conclusions from a limited and unusual period in the market."

Mr Young said the Scottish Land Commission had used findings from that period to support further legislative intervention, including measures introduced through the recently passed Land Reform Act.

While some may welcome lower land prices and fewer transactions, he warned that reduced investment activity could have wider consequences for Scotland's rural economy and environmental ambitions.

According to SLE, slower investment could affect progress on forestry expansion, renewable energy projects, housing developments, nature restoration initiatives and wider rural enterprise.

Mr Young pointed to Scotland's woodland creation figures, noting that 8470 hectares of new woodland were established in 2024-25, falling significantly short of government targets.

He argued that alongside reductions in public funding, policy decisions by both the Scottish and UK governments have made private investment in land less attractive.

The organisation also highlighted concerns over inheritance tax proposals affecting agriculture and warned that uncertainty surrounding future land reform measures could further impact investor confidence.

Despite these concerns, SLE welcomed the report's finding that farmland sales activity has remained relatively stable, although it suggested future structural changes within the farming sector are likely as businesses seek greater scale and efficiency.

Mr Young concluded that Scotland needs a land market capable of attracting responsible long-term investment while providing confidence for rural businesses to invest, grow and deliver economic and environmental benefits.