Demand for Scottish estates rising due to diverse range of buyers

For generations owning a Scottish estate has been the dream of those with the means to pursue such a flagship purchase, offering the potential to enjoy fishing, shooting, deer stalking, family adventures and walking, not to mention providing highly prized privacy and seclusion.

This demand from the private purchaser very much remains, with buyers based not only in Scotland and south of the border but also international buyers who covet the beauty and wildness of Scotland for their own escape.

Scotland’s countryside, be it hill ground, low ground, or coast is also of great interest to those interested in the natural capital of the landholding.

Such a buyer may be a private individual with ecological interests or equally an institutional, corporate or fund buyer, driven by a net zero policy or corporate ESG (environmental and social governance) requirements.

The diverse range of buyers with a broader base of interests and outcomes from the land, has led to significantly greater demand in recent years, particularly when the estates for sale offer potential for woodland creation, peatland restoration, biodiversity enhancement projects and the potential to explore the natural capital opportunities from these activities.

Of course not all land is suitable for tree planting, or offers degraded peat but equally not all buyers are looking to singularly follow a green agenda or a sporting focus.

There are many buyers keen to knit a variety of such elements and perhaps take a more balanced approach; retain farming interests, continue with the sporting interests currently enjoyed, whilst introducing some native or even productive woodlands for a future income, potentially installing a hydro scheme, turbines or maybe generating further income from holiday letting units or perhaps a degree of development such as the more bespoke ideas of a distillery, rural business premises, holiday tree houses or wedding venue.

Thus such an acquisition can be seen as a “win/win” investment as it allows environmental and social governance (ESG) requirements to be met whilst providing a financial return from other parts of the estate.

The sale of an estate today therefore clearly requires not only a detailed understanding of the current enterprises and uses of the property but also the future potential of the estate from alternative pathways.

The arrival of the natural capital buyer a few years ago expanded the Scottish estate market almost over-night with demand far outstripping supply. The market has since matured with buyers seeking far more precise information in advance of going to view a property, as well as very often undertaking their own detailed inspections and surveys in order to be clear that their potential outcomes and desires from the property are achievable. Galbraith has an inhouse Natural Capital division which works closely with the estate sales team and this has proved to be invaluable in providing specific information to prospective buyers.

Finegand Estate, which extends to over 3,500 acres, with seven houses, outbuildings, lochan and an iconic setting in Highland Perthshire was brought to the market last summer. The estate sold within three months of launch and will continue to be run as a traditional estate.

Pluscarden Estate, which extends to almost 1,500 acres, is centred on a very attractive contemporary country house with traditional walled garden and strong farming and forestry enterprise focus, complimented at one time with a notable pheasant shoot. It was brought to the market also in the summer of

2022 and following a closing date has now sold to another traditional buyer.

Two other estates, Clounlaid & Crosben, and Be-ach, both on the West Coast and extending to a total of 7,000 acres, were put up for sale last year and following a closing date sold to one buyer with natural capital-orientated interests.

In summary, those looking to buy an estate have increased in number, they come with a much wider variety of interests and supply remains extremely limited.

Emma Chalmers is a partner and head of Estate and Country House sales. n

Emma Chalmers

07899 877 732 emma.chalmers@galbraithgroup.com