Rural Land Values & Diversification
Rural Land Values and Land Diversification: This research briefing covers two key areas: how land is valued and what land ownership diversification means to different stakeholders involved in land.
What were we trying to find out?
Land values are at historically high levels due to many interrelating factors including increased demand, reduced supply and an increasing interest in natural capital payments as a means of monetising land. This research was concerned with understanding how land values in Scotland are derived, if the methods of valuing land are changing and what the consequences of high land value are in regard to landownership diversification.
What did we do?
The research involved interviews with land agents, a focus group with land valuers and two roundtable events with a range of stakeholders involved in land.
What did we learn?
Land Values
- Land values are rising, most prominently on bare upland ground suitable for tree planting and estates.
- There is increased demand for land.
- Methods for valuing land are evolving to account for natural capital payments.
- Comparable data is harder to find, and valuations are now sometimes conducted on an acre-by-acre basis, accounting for areas which would be suitable for tree planting and peatland in need of restoration.
Land Diversification
- All involved stakeholders recognised the opportunity for diversification.
- The existing challenges of tenure, land prices and insufficient support systems need to be addressed before any major change is implemented.
- Different stakeholders interpret certain terms in different contexts.
- Diversifying land ownership through new forms of ownership or governance is complex and requires structural changes, clear strategies and refined terminology to improve the process.
What do we recommend?
- Government could investigate new means of helping struggling groups, such as young farmers and community groups, to acquire land.
- Further Codes should be developed to avoid market speculation (and increased land values) in biodiversity/ rewilding and soil sink credits.
- Consultation with a wide range of stakeholders interested in land ownership would help to provide a clear definition of 'diversification'.
- Reforming the tenure system would help to create more collaborative forms of land ownership (with tenants not fearing eviction).
- Improve clarity concerning natural capital payments and tenants.
Read the full report below. DOI: https://doi.org/10.58073/SRUC.23198933.v1
