The Land Reform (Scotland) Bill 2024, introduced by the Scottish Government, addresses land ownership, management, and use in Scotland. It aims to clarify practical and technical details, with many provisions to be expanded through secondary legislation focusing on land management, community engagement and right to buy, further reform to agricultural holdings, and expands on the existing regulatory framework following on from the Land Reform (Scotland) Act 2016.
Let’s explore the Bill and break down what it could mean for you.
What land will be affected?
As currently drafted, the rules on community engagement and land management will catch:
(1) landholdings on the mainland of more than 3000 hectares; and
(2) landholdings on inhabited islands of more than 1,000 hectares, where that comprises more than 25% of the island.
The rules on transfers of land will affect landholdings over 1,000 hectares. Changes to the existing community right to buy will also affect landholdings over 1,000 hectares. As a result, “large landholding” will mean different things in different contexts.
Large landholdings
Part 1 of the Bill relates to measures governing large landholdings including management and transfer of ownership and proposes controls in relation to both and highlights Management Obligations to be imposed on large landholdings.
What is a large landholding?
At present, a large holding is defined as Land on the mainland of more than 3000 hectares or land on an inhabited island of more than 1000 hectares where that area is more than 25% of the island’s total area
Composite holdings can also be caught by the proposals where the combined area of physically connected land is owned or controlled by connected parties meets the relevant threshold – even if individual holdings do not. It may prove difficult to identify “composite holdings in practice.
Community engagement obligations in relation to large landholdings
Under the Bill, The Scottish Ministers are obliged to bring forward regulations to require owners of large land holdings to provide a publicly available land management plan which
details ownership structures, the owners’ management vision and objectives, compliance with access legislation, deer legislation and other government-imposed regulations; and
sets out the management strategy for contributing positively to net zero, adapting to climate change and the increase or sustainability of biodiversity.
In addition, owners of large land holdings would be under an obligation to give consideration to reasonable letting requests from a community body.
Extension of Community right to buy
The Bill also expands on the existing rules surrounding Community Right to Buy. Any transfer (or action with a view to transfer) of land of an area greater than 1,000 hectares (including composite holdings) would be prohibited unless prior consent of the Scottish Ministers has first been obtained.
Currently, communities can register a pre-emptive right to buy a piece of land, ensuring it can't be sold without notifying the community first and giving them the option to buy it.
The new Bill goes further, requiring landowners with holdings of 1,000 hectares or more to notify communities before selling any part of their land, even if no right to buy has been previously registered.
The Bill also proposes giving Scottish Ministers the power to regulate land sales. This includes preventing large land transfers without first deciding whether the land should be divided into smaller lots for different buyers. An appeal process and compensation provisions for these lotting decisions are also proposed.
Exemptions
In cases of actual or potential financial hardship it may be possible for landowners to apply for this restriction to be waived. Transfers which fall within the exempt categories referred to under the Community Right to Buy provisions contained within the Land Reform (Scotland) Act 2003 are also exempt.
Process following application for consent
On application by the land owner to The Scottish Ministers for consent, The Scottish Ministers must publicise on a website the intention to transfer the land and provide instructions for community bodies on how to register an interest in the land. In addition, The Scottish Ministers must notify any party which has previously asked to be notified of a transfer, the local authority, any relevant National Park Authority and the local Community Council.
The prohibition on transfer can only be lifted by The Scottish Ministers. It may not be lifted earlier than 30 days following the intention of transfer being made public. If The Scottish Ministers receive notification of an intention to register a community interest in the land within the initial 30 day period, and are satisfied that the notification procedure will be completed, a further 40 day prohibition on transfer may be applied.
Establishment of the “Land and Communities Commissioner”
As well as the above changes, a new role of Land and Communities Commissioner is to be created and provided with power to investigate alleged breaches of the regulations (and powers to require provision of further information, remedial action and/or impose fines for failure to provide information or in case of a breach).
At present, only listed bodies (including SEPA, NatureScot, Historic Environment Scotland and community bodies) could make a report of a breach to the LCC, but the list could be amended.
This Bill is at an early stage and further updates will be issued as it progresses.
Please note that this is a brief overview; the Bill proposes many reforms affecting various aspects of land use and management in Scotland.
We will continue to publish articles explaining changes in detail and what it could mean for you.
If you have any questions about how the Bill may impact you or your organisation, please get in touch with our team of Rural Solicitors for expert advice and assistance. We have been assisting the Aberdeen and Aberdeenshire community since 1754 and would be delighted to assist you too.