Land and the
public sector

Strengthening public value through better land use

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Local authorities, health boards, public agencies and other bodies collectively own a significant proportion of Scotland’s land.

How they manage, use, or release this land has a direct impact on Scotland’s social, economic and environmental outcomes including availability of land for affordable housing, green infrastructure, and climate targets.

The public sector is also well placed to draw on its skills, expertise and statutory mechanisms to support the use and ownership of land in ways that ensure it is productive and serves the public interest.

The Scottish Land Commission works with the public sector to support better land governance, ensuring public land delivers lasting benefit and helps tackle national priorities from housing to net zero.

Why this matters

Land held by the public sector is one of Scotland’s most important collective assets, with the potential to address local priorities, yet in many places, public land is not being used to its full potential.

At a time when communities face increasing pressure for housing, services, and climate resilience, making the most of public assets has never been more important. By taking a strategic approach, public bodies can help deliver greater public benefit, support local economies, and contribute to national goals for fairer, greener places.

Public land can unlock local opportunities for regeneration and resilience

When used strategically, public land can support transformative local projects, revitalising derelict sites to creating new community spaces and housing, helping places adapt, thrive, and meet future needs.

Using existing tools to accelerate progress

Public bodies can play a pivotal role in addressing long neglected land by using established mechanisms such as Compulsory Purchase Orders (CPOs) and exploring new approaches like Compulsory Sales Orders (CSOs) to bring sites back into productive use. They can also act as facilitators, partners, and investors, helping to unlock opportunities that might otherwise stall. Taken together, these roles can act as a catalyst for land-use change at regional, national and local levels.

Public landownership can help us tackle big challenges

As one of Scotland’s largest landowners, the public sector is uniquely positioned to lead the way in climate action, community empowerment, and landscape-scale change by managing land with clear public interest values.

Public Interest Led Development

Public Interest Led Development (PILD) is a proactive approach where public bodies take a leading role in shaping development to deliver wider public benefit. This involves assembling land, investing in infrastructure, and partnering with private or community actors to drive projects that the market alone may not deliver — such as affordable homes, regeneration, and high-quality public spaces.

By using their strategic position and landownership, public bodies can be proactive in promoting or de-risking sites and ensure development aligns with local needs, maximises long-term value, and supports sustainable, inclusive growth.

The Delivery of Public Interest Led Development in Scotland

A discussion paper by Steven Tolson and Archie Rintoul. Published in March 2018.

Download the document

Supporting fairer and more sustainable public finances

Scotland’s public finances are under growing pressure, but land and property offer untapped potential for raising revenue more fairly and sustainably. Almost 60% of the UK’s wealth in land. It is one of our most valuable assets. By reforming how land is valued, taxed, and brought into productive use, Scotland can open up options to generate resources to invest in public services, tackle inequalities, and support climate goals.

A collaborative and public-sector led approach can also help with creating efficiencies and delivery of sustainable public finance. For example, investing in shared data systems or using public land to deliver housing can create efficiencies and generate economic benefits in the longer term.

Discover the economic impact of land reform

Our work on land and the public sector

The Scottish Land Commission is exploring how public bodies can use and manage land to deliver greater public benefit. Our work provides guidance, evidence, and practical tools to help the public sector unlock the full potential of public land.