THE value of forestry land in Scotland has dropped according to a new report.
It comes in the wake of controversy over public money being given to large landowners to plant trees for carbon offsetting.
However, this year Scottish Forestry saw a significant reduction – a 41% cut – to its capital budget which is used to deliver new woodland creation in Scotland.
The organisation has indicated that large commercial schemes are now receiving lower rates of grants compared with smaller farm and charity projects.
Now new research from the Scottish Land Commission (SLC) has found that just 0.5% of Scotland’s land changed ownership in 2023, reflecting a slowdown in sales activity compared to previous years.
The organisation said the reduction in transactions and the smaller areas of land sold were primarily driven by a sharp decline in forestry land sales.
Although forestry previously contributed to significant price growth in land values, especially in the south-west, this trend has stabilised, according to the Rural Land Market Data Report.
The report highlights 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.
In 2023, the total area of forestry sold decreased by 54% compared to 2022.
Eastern Scotland accounted for the highest number of sales and the largest overall market share during 2020–2023, 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 (above) of the SLC said the Rural Land Market Data Report was crucial for building a clear understanding of Scotland’s land market.
Despite “challenges” with the data, which is based on information from the Registers of Scotland, he said the report revealed clear trends, such as low market activity in large-scale transactions and a cooling of the forestry land market.
“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,” he said.
“Now in its third instalment, the data report provides critical insights into farmland, forestry and estate transactions from 2020 to 2023, offering valuable insights as Scotland works towards land reform objectives.”
