Has the strategic value of your land assets changed in light of Scotland’s new planning policy?

While this remains largely true, following the adoption of National Planning Framework 4 (NPF4), the correct strategy may now be more nuanced.

From a housing perspective – and in the context of the housing emergency declared by the Scottish Government and many local authorities (LAs) – you might assume that securing zoning or planning consent has become easier.

However, under NPF4, windfall applications on non-zoned sites are not being accepted, and councils are being challenged to rezone sites that have remained undeveloped. Despite the government's push for LAs to zone more than the minimum number of houses required, it appears that, particularly in the central belt, most will do no more than the minimum. A silver lining does exist: some councils are prepared to consider windfall sites in light of the housing emergency, but this remains more of a trickle than a flood.

Landowners should act now

Future LDPs will span 10 years instead of five, and it seems likely that insufficient land will be zoned to address the housing delivery deficit since 2008. Given this backdrop, it is imperative that landowners act now to both protect existing zonings and secure new ones.

Looking ahead, most historic promotion agreements are unlikely to be NPF4-compliant and may need renegotiation. Understanding the terms of your agreement, what you are being asked to agree to, and how it impacts the value of your land is crucial. Seeking expert advice across various sectors will be essential.

Opportunities in the energy, environmental and infrastructure sectors

NPF4 presents opportunities for landowners within the energy and environmental sectors, albeit uncertainty remains as progress in energy development is influenced by the ongoing reforms to the electricity grid.

LAs are not specifically zoning land for these uses, meaning planning timelines and financial returns could be significantly shorter than for housing. Furthermore, land developed for energy purposes allows greater flexibility – landowners can choose whether to retain or sell assets at the right time.

Additionally, Scotland's data centre market – classified as essential infrastructure – is rapidly evolving, particularly with the rising demand for non-hyperscale sites. Values for sites designated for this use can be highly competitive with residential development and may be quicker to deliver.

Choosing the best strategy

In the current legislative framework, choosing the best strategy for your land will require a collaborative effort from various specialists. The earlier this process begins, the more beneficial it will be. Now more than ever, prioritising your land’s strategic objectives within a planning context is critical.

The Royal Highland Show later this week brings together Scotland’s largest gathering of farmers and landowners, making it an ideal setting to discuss the challenges and opportunities presented by NPF4.

The evolving planning landscape will be a key concern for many, and I'll be attending alongside our team at the Savills stand to share insights and perspectives. If you’re visiting, it could be a good opportunity to explore with a variety of experts how these changes might affect your land strategy.

Further information

Contact Richard Thompson