August 25, 2024 | The Financial Times |
The Scottish land market has seen a shift as interest from wealthy rewilders and fund managers in commercial forestry and peatland restoration has cooled. Initial enthusiasm for carbon credits, used to offset UK emissions, has been tempered by doubts over credit validity, economic challenges, and delays in forestry approvals. The value of hill land and estates surged from 2018 to 2021 but has recently dropped by 20-25%.
New regulations require planting more native broadleaf trees, which enhance biodiversity but slow carbon sequestration. As institutional investors retreat, "lifestyle" buyers are re-entering the market. The Scottish government aims for net-zero emissions, but the market faces challenges, including weather risks and limited government funding.
