Land acquisition by public bodies has a stronger role to play to address Scotland’s rural housing crisis, according to a new report issued by the Scottish Land Commission.

The report,outlines key actions needed to ensure a steady supply of land for much-needed rural housing, using publicly owned land to drive development.

Scotland’s rural communities face severe housing shortages that are driving young people and families away, limiting job opportunities, and constraining economic growth.

In response, the Scottish Government has declared a housing emergency, highlighting the urgent need for action.

The Scottish Land Commission’s proposals aim to ensure public land is actively used to address this crisis, ensuring land is available for much needed homes.

Chair of the Scottish Land Commission, Michael Russell, stated: “The rural housing crisis is a significant threat to the future of Scotland’s communities and economy.

“Our research shows that public bodies have a key role to play in unlocking land for housing.

“By using public land ownership more actively government and public sector agencies can create the conditions necessary for rural housing development to succeed at scale.

“This is not about replacing private development, but about creating the certainty, land supply and opportunity needed to make housing delivery viable in rural areas.”

The Scottish Land Commission’s recommendations include:

Creating a long-term pipeline of land for housing by using the powers of existing public bodies to buy, sell, and hold land.
Establishing a large-scale capital fund to recycle proceeds from public land sales into further acquisitions and development.
Requiring public landowners to identify land suitable for rural housing.
Updating Compulsory Purchase Order rules to make them easier to use when needed.
Providing better guidance and support to help public bodies release land at effective prices.
Focusing public support for Local Place Plans in areas with economic potential or declining populations.

The proposals draw on new research from the University of Glasgow, commissioned by the Scottish Land Commission, which reviewed practical steps to establish a long-term land supply for housing.

The report recommends establishing a Housing Land Agency, similar to models in England and Ireland, to acquire and prepare land for development. The Commission believes this can be achieved in the short term by leveraging existing public body functions.

Some local authorities are already leading the way, demonstrating that public-led land assembly can work.

However, expanding and resourcing these efforts is critical. Regional leadership can provide the necessary scale, collaboration, and alignment with economic priorities.

Alongside significant government action on planning reform and finance, establishing a long-term land pipeline will be a fundamental step in ensuring rural communities can thrive.

New proposals to address rural and island housing crisis

12 February 2025