THE total area of Scotland’s land sold for forestry plummeted by more than half in the past year, a report has revealed.

The Scottish Land Commission’s 2024 Rural Land Market Data Report, released this week, looks into farmland, forestry and estate transactions from 2020 to last year based on data from Registers of Scotland (RoS).

The report showed in 2023 the total area of forestry sold shrunk by 54 per cent compared to 2022. The data showed just 0.5 per cent of Scotland’s land changed ownership in 2023, reflecting a slowdown in sales activity compared to previous years.

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The reduction in transactions and the smaller areas of land sold were primarily driven by a sharp decline in forestry land sales, the report said.

Although forestry previously contributed to significant price growth, especially in the south-west of the country, the figures showed this trend has stabilised.

The report also highlighted a stark reduction in the overall market value of forestry sales. From a peak of £286 million in 2021, this figure plummeted to just £70m in 2023, marking a 75 per cent drop in market value over two years.

Despite this, eastern Scotland accounted for the highest number of sales and the largest overall market share during 2020–23, with a total value of £291m.

Meanwhile, south-west Scotland recorded the highest average land values, at £22,801 per hectare. The majority of forestry market value during this period was concentrated in Dumfriesshire, Roxburghshire, Argyll, and Perthshire.

James MacKessack-Leitch, policy and practice lead at the Scottish Land Commission, said: “The Rural Land Market Data Report is crucial for building a clear understanding of Scotland’s land market. Despite challenges with the data, the report reveals clear trends, such as low market activity in large-scale transactions and a cooling of the forestry land market.

The reduction in transactions and the smaller areas of land sold were primarily driven by a sharp decline in forestry land sales, the report said.The reduction in transactions and the smaller areas of land sold were primarily driven by a sharp decline in forestry land sales, the report said.

“By improving the quality and transparency of market data, we can gain the insights needed to identify opportunities to create a vibrant and transparent rural land market, which is key to creating more opportunities for communities, businesses and individuals to own and benefit from Scotland’s land.”

It comes after the UK Forest Market Report 2024, published last month, revealed £95.4m of forestry was listed for sale in the UK overall - a 55 per cent fall on the previous year.

Responding to the SLC report, Scottish Land & Estates, the rural business organisation, said it demonstrates the need to avoid a ‘kneejerk policy reaction’ to short term market trends.

Sarah-Jane Laing, chief executive of Scottish Land & Estates, said: “The data clearly shows the diversity of the active Scottish land market, especially in the farmland sector, where buyers and sellers are actively engaging in transactions of various sizes and values. 

“While the rise in land prices following the pandemic has been cited as a key reason for the push for new land reform legislation, this report highlights that short-term fluctuations should not drive such decisions. A deeper understanding of land economics and the factors behind transactions is essential to prevent policymakers from making kneejerk decisions that could harm rural Scotland in the long run. 

“Moreover, the Scottish Government and its agencies are significant players in the land market, and their influence on land prices, along with the impact of funding and policy, is not always appreciated or understood. 

“The proposed land reform bill risks discouraging investment in rural businesses and could lead to a reduction in land sales due to the bureaucratic burdens it would introduce. We strongly urge the Scottish Government and politicians from all parties to collaborate with rural businesses to create a policy framework that truly supports rural communities and economies and ensures a future sustainable land market.”