The Land Reform Bill passed in November 2025 has sparked widespread discussion across Scotland’s rural sector but its implications for commercial forestry remain less explored. The new rules demand greater openness in relation to ownership and management, community involvement and environmental accountability, while also reshaping how land can be sold and/or transferred.
Land in Scope
The Bill targets owners of landholdings over 1000 hectares. While many commercial forestry holdings are smaller, complex rules risk separate areas of land being treated as amalgamated and therefore trigger the obligations, if owners are “connected”. The rules on connection involve the Register of Controlled Interests in Land and some owners may unexpectedly fall within scope. It is therefore hoped that such issues will be resolved before the relevant provisions are brought into force.
Separate areas of land are required to be within 250 metres of each other to be amalgamated, which means the major threat for some forestry owners, of considering all land in the same ownership throughout Scotland, has been avoided for the moment, despite several attempts to bring this into the legislation.
There has also been strong lobbying to have the 1000 ha limit reduced, by as much as half. At present the Cabinet Secretary has resisted those calls but stated that the position will be kept under review once the legislation comes into effect. For now, those in the forestry sector are perhaps more likely to encounter land reform restrictions when dealing with neighbouring estates, or land being looked at for planting, than when dealing with existing assets.
Community Engagement Obligations
If in scope, large landholdings will have to prepare a publicly available Land Management Plan (LMP) setting out the long-term vision and objectives for the land, including potential future sale. Guidance is to be provided on the detail of LMP preparation, but the Bill states that there must be engagement with communities when developing the LMP and future significant changes to it, including review at least every five years. One might anticipate that for forestry there is unlikely to be significant change to plans at those review points, but it remains to be seen what the expectations may be to disclose e.g. renewables proposals.
The forestry sector may be a step ahead of other rural businesses as many commercial forests already have Long Term Forest Plans. LMPs, however, must also set out how owners are complying or intend to comply with the Scottish Outdoor Access Code and the Code of Practice on Deer Management, as well as how the owner is managing or intends to manage the land in a way that contributes to net zero emission targets, adapting to climate change and increasing biodiversity. Scottish Forestry are likely to be the party with the obligation to promote e.g. biodiversity and therefore their requirements for planting may change in future. Noting that a forest is being managed in accordance with a Scottish Forestry approved scheme may be sufficient for the LMP. More detail on how LMPs are to be prepared will follow in regulations and guidance.
Restrictions on Sale
Off-market sales will be a thing of the past for owners of large landholdings. Land to be sold from a large landholding will go through a statutory process to publicise the intended sale, with communities given extended rights to register an interest in purchasing the land or part of it. If an interest is registered, sale to the community body will progress in respect of the relevant area at market value, agreed between the parties or determined by an independent valuer. The owner can then market/sell any remainder.
Certain transfers (in addition to transfers already exempt from community right to buy provisions such as transfers other than for value) will be exempt. Detail is left to future regulations but exchanges of land to resolve boundary issues would seem a sensible potential candidate for this type of exemption.
It will also not be possible to sell 1000+ha from a large landholding at once, without obtaining a “lotting decision” from the Scottish Ministers. This allows Scottish Ministers to carve up the property into lots, with no single buyer (or connected person) able to acquire more than one lot. There are provisions for compensation in recognition that lotting may incur expense and/or loss and anti-avoidance provisions exist to prevent sellers simply creating their own lots and marketing separately. As existing standalone forestry assets tend to be under 1000ha in area, lotting is considered likely to be rare in their sale. Portfolio sales will be unaffected provided none of the individual properties comprises a large landholding. Lotting may, however, affect prospective buyers, who might have been interested in multiple lots of a lotted property and who will be prevented from acquiring more than one.
As much of the detail will be determined through secondary legislation and guidance, it will take time for the Bill’s provisions to come into force – and even longer for their full impact on the sector and markets to become clear. Forestry businesses within the scope of the legislation may face additional compliance requirements and reduced flexibility in land sales. Expanding operations could encounter some barriers, however, in good news for a sector critical to achieving Scottish Government ambitions in relation to carbon sequestration and the journey to net zero, most forestry businesses are thought unlikely to be significantly affected by land reform measures.
*Originally featured in The Herald on 21st November 2025: What does land reform really mean for commercial forestry in Scotland? | The Herald
