23 May 2024

In March 2024, the Scottish Government introduced the Land Reform (Scotland) Bill (“the Bill”) which aimed to reshape the landscape of land ownership and management in Scotland. This Bill, part of a broader commitment to creating a fairer, more equitable society, seeks to address longstanding issues related to the concentration of land ownership in a small minority and further community empowerment.

The Context of Land Reform in Scotland

Scotland has a unique history when it comes to land ownership. A significant portion of the country’s land is held by a small number of private owners, a situation that has historical roots in the feudal system and has persisted through the centuries. This concentration of land ownership has often been criticized for limiting opportunities for local communities and individuals to influence or benefit from the land that surrounds them.

Over the years, the Scottish Government has taken steps to address these issues. The Land Reform (Scotland) Act 2003 and the Community Empowerment (Scotland) Act 2015 were pivotal in giving communities the right to buy land and buildings under certain conditions. The Bill seeks to build on previous legislation to further democratize land ownership and management. 

Key Provisions

The Bill introduces several significant measures aimed at enhancing transparency, accountability, and community engagement in land ownership.

Some of the key provisions include:

• Public Interest Test for large scale land transactions: One of the most notable elements of the Bill is the introduction of a public interest test for large scale land transactions, and in particular private sales of estates. Under the Bill any transfer of significant areas of land will be evaluated based on its potential impact on local communities and the environment and aims to prevent land monopolies.
• Community Right to Buy: Building on previous legislation, the Bill extends the community right to buy, making it easier for local groups to acquire land. This includes provisions for community bodies to be given first refusal of land sales in their area, thereby empowering them to take control of local assets and use them for community benefit.
• Transparency in land ownership: The Bill mandates the creation of a comprehensive and publicly accessible register of land ownership in Scotland. This measure aims to increase transparency and allow communities to understand who owns the land and how it is being used. Greater transparency is expected to discourage speculative landholding and promote responsible stewardship of land resources.
• Sustainable land management: The Bill includes requirements for landowners to manage their land sustainably, with specific guidelines to protect and enhance the natural environment. This aligns with Scotland’s broader environmental goals and commitment to tackling climate change.

Potential Impact and Reception

The introduction of the Bill has been met with a mix of enthusiasm and concern. Supporters of the Bill argue that it represents a significant step towards a more equitable and sustainable approach to land ownership and public utilisation. With the potential to reduce or split up large landholdings and giving communities greater control, the Bill has the potential to foster local development, reduce inequalities and enhance environmental stewardship.

Community groups and environmental organisations have broadly welcomed the Bill, citing the opportunity to correct historical imbalances and promote a model of land ownership that prioritised the public interest. The emphasis on sustainability and transparency is also seen as a crucial component in addressing contemporary challenges such as climate change and biodiversity loss.

However, some critics have expressed concern regarding the potential impact on private landowners and the rural economy. There are fears that the public interest test and other regulatory measures could create uncertainties and discourage external investment in Scottish holdings areas. Accordingly, balancing the interests of private landowners with the broader goals of the Bill will be a key challenge as the legislation progresses through the Scottish Parliament.

If you have any queries about how the Bill may affect you or your business, please get in touch with one of our team today.

Siobhan Brown, Solicitor: sib@bto.co.uk / 0141 221 8012