The Land Reform (Scotland) Act 2025 is now law. It aims to increase transparency around land ownership in Scotland and expand community buyouts of land by requiring that in some instances, larger holdings for sale should be split up and sold as smaller plots.
What’s the issue?
Land ownership in Scotland has long been a target for reform by the government. It is estimated that half of all privately owned rural land in Scotland (3.2 million hectares) is owned by just 433 people and companies. Just 2.76% of rural Scotland is owned by community groups. Over the period 2012-2024, community-owned land has increased by only 40,000 hectares, according to Scottish Government figures.
Who is affected by the Act – and how?
Owners of large land holdings
The Act defines large land holdings as single or composite areas of land which measure more than 1,000 hectares. Under the Act, large landowners must ensure they have a land management plan in place which is publicly available. They must engage with communities and tenants when developing the plan and must review and, if necessary, update the plan every 5 years. Plans will have to include details of:
- the land and how ownership of it is structured
- what the land is used for
- the owner’s long-term objectives for the land, such as whether they intend to sell or transfer ownership of it
- the engagement the land owner has had with communities and tenants on the terms of the plan while it was being prepared
- details of how the land owner complies with their obligations, for example those under the Act, the Scottish Outdoor Access Code and the code of practice on deer management
- details of how the land owner is managing, or intends to manage, obligations in relation to environmental targets
This is not an exhaustive list. If a community body makes a reasonable request to lease the land or any part of it, including any building on it, or to have the land or any part of it constituted as a croft, the owner of the land must give consideration to the request.
Owners of large land holdings will also be required to notify the Scottish Ministers before selling or transferring their land. The Scottish Ministers will have power to require that community bodies are given the opportunity to buy the land before it is sold on the open market. Ministers may also require that the land be split up into smaller lots and sold off separately.
Owners of large land holdings will be under scrutiny to ensure they are engaging transparently with the community, from the development of land management plans onwards. If they are found to have breached obligations in the Act, they can face fines from the Land and Communities Commissioner.
Community bodies and local communities
Under the new Act, communities will gain new rights in terms of being involved in dialogue about land management and sale decisions.
Community bodies will be able to register their interest to purchase or take on a transfer of large land holdings. When the owner of a large land holding notifies the Scottish Ministers of their intention to sell or transfer their land, ministers may give interested communities an opportunity to purchase the land before it is sold on the open market. Ministers may also require that any such large land holding is split up into smaller lots and then sold or transferred separately.
Local communities will also be encouraged to help shape land policy via the Land Rights and Responsibilities Statement (LRRS) and to participate actively in land management plan consultations with large landowners.
Tenant farmers and small landholders
Tenant farmers and small landholders will benefit from stronger tenancy laws which bring in clearer rules around compensation, improved definitions and more transparent rent reviews. They will also be protected during lease termination or land resumption, with detailed notification and compensation rights.
New types of leases will be introduced, focusing on environmental and regenerative farming support.
What is lotting?
Lotting refers to a legal mechanism in the Act that enables Scottish Ministers to require that large land holdings are split into smaller ’lots’ for sale or transfer, rather than the land being sold as a single holding. This is intended to diversify ownership and improve community engagement and sustainability.
When does lotting apply?
Owners of all large land holdings will need to allow the Scottish Ministers to split their land into smaller lots to be sold or transferred. This will apply whether the land is a single estate or a composite of contiguous and connected land.
Lotting will also apply to any area of land measuring over 50 hectares which forms part of a larger area of land which measures over 1,000 hectares for which notice of an intended sale or transfer has been given.
Ministerial lotting decision
The sale of any large landholding must be approved in advance by the Scottish Ministers who will decide whether the land should be sold as a single block or broken down into smaller lots.
Scottish Ministers’ decisions will be influenced by factors including whether subdividing the land will better serve community interests or will improve environmental sustainability.
Controlling connected purchasers and transferees
If a decision is made to subdivide large land holdings into smaller lots, those lots cannot be sold or transferred to “connected persons”. This measure is intended to prevent a situation whereby someone can avoid their obligations under the Act by obtaining several small lots which reassemble a large land holding.
Action points for affected parties
If you’re affected by the introduction of the Act, what are the actions you should be taking now?
Landowners
You should take steps to identify whether any of your land measures over 1,000 hectares in size, including those in composite ownership.
You should start drafting a land management plan in preparation for having to engage with community groups in its development. The plan should include, for example, details of the land ownership structure, the steps you have taken to engage with the community and your long-term plans for the land including whether you have any intention to sell or transfer it or any part of it.
You will need to engage proactively with local communities, tenant farmers and small landholders to gather feedback on the draft plan.
As soon as possible, you should set up internal procedures to allow you to notify the Scottish Ministers of any intention to sell a large landholding.
You should also appoint legal representation to advise you on the preparation and development of the plan and any compliance issues that may arise, or potential fines you may face.
Community groups
Community groups should monitor the Land Register to locate large land holdings and understand controlling interests.
When sale or transfer notifications are issued, you should register a “community interest” to ensure you are given first refusal on purchasing the land or any part of it.
When consulting with large landowners on their land management plans, you should proactively engage with the process to ensure your views and interests are taken into consideration.
If your group plans to acquire land, you will need to prepare funding strategies, for example via the Scottish Land Fund.
When lotting (see above) or sale opportunities arise, you will need to engage experts and legal representation to assess and compile fair bids.
Tenant farmers and small landholders
Make sure you understand your tenancy rights under the new law, including compensation rules, improvements policy and the rent review framework. You should take legal advice and expert guidance on this as soon as possible, for example from the Tenant Farming Commissioner.
When you are notified of land resumption, make sure your response is submitted as soon as possible and make yourself aware of your entitlements via the Tenant Farming Commissioner.
Investors and corporates
You will need to carry out due diligence on holdings which measure 1,000 hectares or more, including those held in composite ownership. Start to plan for potential lotting in the event that an acquisition crosses the threshold.
Transparency is key when it comes to registering a controlling interest in land and community engagement efforts. Take steps to incorporate your land management plan, engagement costs and timelines into your acquisition strategies.
What to expect and when
Having only just been passed, the obligations under the Act do not yet have a single start date. Different parts will come into force at different times through subsequent regulations which will be made by Scottish Ministers.
A tentative timeline might look like this:
December 16th 2025: The Land Reform (Scotland) Bill received Royal Assent and officially became an Act of the Scottish Parliament.
Early 2026: The Scottish Government is expected to publish model leases for environmental and hunting purposes, as well as final proposals following public consultation on community Right to Buy improvements.
Ongoing: The specific obligations and operational details for many of the Act’s key measures, including the threshold for “large landholdings,” the content of Land Management Plans and procedures for the “transfer test”, will be confirmed in future secondary legislation and guidance, which is yet to be issued.
