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Scotland

What the Land Reform (Scotland) Act 2025 means for landowners

The Land Reform (Scotland) Act 2025 received Royal Assent in December 2025. It isn't aimed at renewable energy specifically, but its provisions on large landholdings have real implications for landowners with renewable leases.

What the Act introduces

Large landholdings now face new public interest tests, mandatory land management plans that must be made publicly available, and a new "lotting" mechanism that can require large holdings to be split into smaller parcels on sale, rather than sold as a single block. Landowners selling significant landholdings must also offer them to local communities first.

What it means for renewable leases

Renewable energy projects often depend on long-term control of land assembled from multiple ownerships, held together through options, leases, and servitudes. The Act's new transparency and community-engagement requirements could add process, delay, or funder scrutiny to landholdings that are already committed to a renewables project — even though the Act doesn't target renewables directly.

Much of the detail — including the threshold for what counts as a "large landholding" — is still being confirmed through secondary legislation. The direction of travel, though, is clearer: increased scrutiny of private land ownership decisions.

Why some landowners are capitalising now

For landowners with a long-dated renewable lease, this kind of policy shift is a reminder that leases sitting under a "guaranteed" label are still, in effect, long bets on government policy remaining stable. Taking some of that value off the table today, while today's terms and framework are known, is one way to reduce exposure to whatever comes next.

This is a general summary, not legal advice. Speak to a solicitor for guidance on how the Act applies to your specific landholding.

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