Influenced by economic conditions, legislative changes, and evolving buyer preferences, the Scottish property market continues, regularly, to experience significant shifts.

With reductions in agricultural subsidies and potential inheritance tax changes, many farmers are exploring alternative income streams. Development opportunities, renewables, and biodiversity projects offer new revenue avenues.

A structured approach to succession planning is crucial. Many farmers hold valuable land but lack a clear strategy for capitalising on it. Our role is to guide landowners through this process, connecting them with planners, accountants, legal advisors, and developers.

By engaging early, landowners can position themselves for future opportunities while mitigating risks associated with policy shifts.

Investors are increasingly interested in biodiversity net gain projects, particularly in England, where regulatory frameworks are more developed. Similar trends may emerge in Scotland, providing further diversification options for landowners.

For many years, DM Hall has been at the forefront of long-term strategic land sales in Scotland, particularly on the urban fringes.

Every Scottish council has housing targets to meet, but the frequency of local development reviews has stretched from five-year cycles to ten or even twenty years, increasing the importance of timely and accurate submissions during the call for sites windows.

One case, in Kilbirnie, North Ayrshire, illustrates the importance of allocation within the local development plan. While the site lacked planning permission, its designated status facilitated faster processing, particularly given the 20-minute proximity to Glasgow and the demand for affordable housing. In contrast, more rural sites face longer planning timelines, requiring thorough feasibility assessments.

From time to time, however, councils issue calls for sites creating an opportunity to promote land with potential and, for over 30 years, we have supported farmers in transitioning land from agricultural use to development, often within urban fringe areas. Some of these transactions span decades, highlighting the complexity of the planning system.

Another recent sale in Bonnyrigg of former farmland for housing took 35 years to complete, and another, ongoing for 25 years, is expected to conclude this year. Securing housing allocations on Greenbelt land is a laborious process dictated by policy frameworks such as National Planning Framework 4 (NPF4) and expert advice is required.

A major issue affecting development is the backlog in Scotland’s planning system. With over 60 planning vacancies currently unfilled, delays have become systemic. Previously, planning officials would conduct site visits and engage in direct discussions; now, remote working and staffing shortages have reduced these interactions, creating bottlenecks.

This extends beyond housing; renewable energy projects face similar issues. Despite a growing number of renewable site proposals, grid infrastructure is lacking, and planning delays further stifle progress.

For instance, despite Scotland’s vast natural resources, many wind and solar farms face infrastructural challenges and cannot proceed due to transmission constraints, and the lack of coordination between planning authorities, SEPA, and roads departments adds further complexity.

Scotland also faces a fundamental dilemma: the need for housing conflicts with the preservation of good agricultural land, and while there are numerous brownfield sites in urban areas, redevelopment costs often make these less viable compared to urban fringe and Greenbelt development.

The ongoing debate over land use intensifies as food security concerns rise. While large-scale developments are often easier to approve than smaller bespoke projects, the long-term implications of building on fertile farmland remain a contentious issue.

At DM Hall, we encourage landowners and investors to act proactively. Engaging early with the planning process, exploring diversification options, and preparing for evolving tax policies will be key to unlocking value in Scotland’s ever-changing property market.

We offer a full range of professional services to landowners navigating this process, whether they choose to sell directly, enter joint ventures, or pursue development themselves.

Donald Yellowley is a Partner at DM Hall.

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