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Rural Diversification

At Anderson Strathern, our legal experts have extensive experience supporting a wide range of rural diversification projects.

At Anderson Strathern, our legal experts have extensive experience supporting a wide range of rural diversification projects. We understand that adaptability is essential for any business—especially for rural enterprises often, they are passed down over generations and embracing rural diversification enables landowners and agricultural businesses to future-proof their operations, as well as new legal requirements, will be fundamental to securing its future viability.

Understanding the drivers of rural diversification

In recent years, rural diversification has become an essential strategy for rural landowners seeking to increase revenue streams, reduce reliance on traditional agriculture, and respond to shifting economic and environmental conditions. External pressures such as changing subsidy regimes, volatile commodity prices, and climate resilience have made it necessary for rural businesses to explore alternative sources of income. By embracing new land uses, rural business owners can not only improve financial sustainability but also enhance the long-term value and adaptability of their land.

We recommend seeking expert advice at the start of any rural diversification project. There may be legal requirements that are time-bound or involve third party consent before a diversification can proceed and this is the time when the most options will be available to you tailored to meet both legal and commercial goals our rural law solicitors provide bespoke guidance to help your business thrive through effective rural diversification. The tax consequences of the project can also be reviewed at this stage and we work closely with colleagues in our Wealth and Trusts Team to secure the best tax outcome for you.

What are common pitfalls in rural diversification?

Many landowners underestimate the complexity of rural diversification. Common pitfalls include failing to secure the right planning permission, entering into contracts without proper legal review, or overlooking tax implications. Others may assume that existing land designations automatically allow new uses, only to find restrictions due to conservation areas, protected habitats, or access issues. Engaging a specialist legal team early helps mitigate these risks and ensures your project is set up for success from the outset.

Legal considerations in rural diversification projects

Every rural diversification project brings with it a range of legal considerations—from land use and planning permission to commercial agreements and regulatory compliance. Whether you’re launching a glamping business, installing wind turbines, or rewilding part of your estate, it’s crucial to understand how these activities may impact your existing property rights and obligations. We regularly advise clients on how to structure diversification projects to avoid unintended legal complications, such as breaching tenancy agreements, triggering inheritance tax liabilities, or compromising existing grant eligibility.

How we can help with rural diversification

At Anderson Strathern, we offer comprehensive legal support tailored to your rural diversification plans. Our team can assist with planning applications, land use changes, joint venture agreements, and environmental impact assessments.

We also work closely with lenders and land agents to ensure your diversification initiative is properly funded and aligned with your broader estate or business strategy.

Whether you’re exploring renewable energy, tourism ventures, or woodland creation, our legal advice will help you navigate risk, identify opportunities, and structure your project for long-term success. With deep roots in Scotland’s rural legal sector, we’re proud to support clients as they adapt and grow through rural diversification.

Contact us on 0131 270 7700, visit our offices in EdinburghGlasgowEast LothianShetland or Orkney, or fill in our enquiry form to request a call back.

"The depth of experience which the team at Anderson Strathern has gathered in working with rural estate clients allows them to seamlessly handle large, complex and high value transactions as well as supporting day to day operational matters and queries. The advice provided by the team is enhanced by experience in the forestry, energy and commercial sectors as well as in the agricultural sphere."

Client testimonial