The Land Reform Bill (Scotland) is currently passing through Stage 2 of the Parliamentary process, taking proposed amendments from MSPs for consideration. At time of writing (early June), over 500 amendments have been put forward.
Whilst this is a dynamic situation, and subject to change before becoming an Act of Parliament, the headlines are likely to remain part of the legislature. There will definitely be implications for landowners and estates:
Landowners will be required to notify Scottish Ministers if selling part or whole of a “large land holding.” The size is still to be determined, and was initially set at 1,000ha (2,470 ac) but amendments were proposed to bring it as low as 500ha (1,235 ac). If this is the case it captures many working farms.
For estates exceeding 3,000 hectares (7,412 acres), there is a requirement for a Public Management Plan to be in place. Proactive businesses operating at that scale should already have a plan/plans in place for their business enterprises, so it should not be too problematic to pull together a summary for the public to understand what the business is trying to achieve.
Those large businesses that do not currently have constitute parts in place, like long-term forest plans, should start creating these building blocks now. Clients we have helped develop plans are already finding them beneficial, working as an engine for growth.
The resumption process for Agricultural Tenancies is being revised and is likely to follow a statutory valuation process for compensation. All resumptions will need to be notified to the Tenant Farming Commissioner, but there are still questions around the dates when compensation is to be valued, and whether willing parties can agree shorter resumption periods.
Given that there are several elements of the 2016 Land Reform Act still awaiting enactment (with suggestions some never will), and the Scottish Governments tendency for secondary legislation to provide the real detail, there could still be a long road before measures are effective. It is not even certain that the Bill will be passed before the end of Parliament (May 2026).
Estates and landowners who may be affected but have not yet developed or finalised management plans, should do so now. For those not sure if or how they will be affected, contact our property team to discuss your options. Contact Niall Milner on 0131 449 6212.
