Reuse of Vacant and Derelict Land: A Progress Report on The Scottish Land Commission's Policy

The policy of redeveloping vacant and derelict land ("VDL") forms part of the Scottish Government's regeneration strategy originally set out in 2011. Addressing the challenge of reducing the amount of VDL situated in Scotland that can be reused or redeveloped in a way that provides economic, physical, and social benefits to our communities, especially the most disadvantaged communities, is a key strategy of that policy.

In seeking to implement the policy, the Scottish Land Commission appointed Ryden to prepare a report on the extent to which vacant and derelict land is being redeveloped. Ryden reported in 2019 with various recommendations which sought the productive re-use of VDL and a preventative approach to prevent an inflow of new vacant and derelict sites. Ryden was instructed to provide a progress report in 2024 to assess whether there is evidence of positive change in the re-use of VDL as well as a reduction in the creation of new sites in the past 5 years.

This progress report was published in September. In summary, Ryden found the following key points:

•  Scotland's stock of VDL sites is reducing. Site numbers fell by 15% and land area by 21% between 2017 and 2022. The regional pattern is variable, with the Clyde Plan/Glasgow City Region delivering the most pronounced fall in the number of VDL sites
•  Not surprisingly, the biggest sector that is redeveloping VDL sites is the residential sector. This sector accounts for just over half (51%) of the VDL sites that have been redeveloped. Development for industrial use is next with 10%. Clyde Plan area dominates with regard to the number of sites re-used for residential development, followed by Dumfries & Galloway and the Ayrshires and thereafter Edinburgh and the East.
• The sustainable re-use of VDL has become thoroughly embedded in the land use policy strategy of developers. There is a focus on slowing the creation of new VDL by maintaining and re-using existing assets. This perhaps was most apparent in the commercial office sector where there has been a focus on the refurbishment of existing office buildings as opposed to the development of new office accommodation.
• Funding sources to support the re-use of VDL sites have increased. The Scottish Government offers a suite of funds which specifically target re-use. However, the report did note this funding has been cut for 2024/25.
• The flow of new sites being documented as VDL has reduced. The number of new sites has reduced by around 25%. It is notable that Clyde Plan Area has the highest incidence of new sites designated VDL, as well as the highest rate of re-using existing sites.
• The majority of developments on VDL are funded by public sector funding or grants. However, the two largest areas of VDL for residential development highlighted as case studies in the report are both privately funded. These are the redevelopment at Bangor Village Hospital and the redevelopment of Killearn Hospital in Stirling for residential and commercial use both by clients of Brodies.

The case studies show the challenges that both developers faced in dealing with the sites including derelict buildings, listed buildings, infrastructure and remediation requirements, and dense woodland and vegetation. The positive impacts in terms of the economic, social and community benefits for the area were also highlighted.

Going forward

The Report does recognise that there are challenges which residential developments face that will impact on the continued increase in the redevelopment of VDL. The reduction in funding for the affordable sector will act as a drag on the residential development of VDL. There is also a concern that there is potential for an increase in vacant buildings in towns and city centres due to changing work patterns.

• The Scottish Land Commission suggests that a proactive approach would help to prevent an increase in VDL and they outline several recommendations including:
• More support for private developers i.e. a package of measures to support the re-use of land and buildings to make this viable for private developers.
• Building on long term regional funding rather than shorter term challenge funding, allowing developers to take a more strategic approach to land re-use.
• Enhancing support for community led initiates to re-use VDL such as the Community Empowerment Act (Scotland) 2015 creating new opportunities for communities to drive local regeneration through Right to Buy.

So, whilst the report indicates that Scotland is moving in the right direction with regard to reducing the amount of VDL it has on its books and has demonstrated that reducing VDL corresponds to an increase in economic, physical and social benefits to our communities, there is still a lot to do in order to reduce that level of VDL stock even further.