More than 50,000 homes lost from Scotland’s PRS due to landlords leaving

More than half of Scottish landlords (53%) plan to leave the sector due to rent control proposals and hostility towards landlords from the Scottish government, according to a new report.

A survey by the Scottish Association of Landlords (SAL) reveals that concerns over increasing regulation have led to a loss of more than 50,000 homes in the private rented sector.

The news comes after the Scottish government announced a compromise for landlords, proposing that rent caps be linked to inflation.

More than 50,000 homes lost from the PRS in Scotland

The report suggests that landlords have withdrawn 8.5% of their properties from the sector during 2024. Last year’s survey found that a further 6.4% of respondents’ properties were withdrawn from the sector during 2023.

Extrapolating these figures across the entire private rented sector in Scotland suggests that around 52,225 homes — 14.9% of the 350,500 properties on the landlord registration database — could have been lost from the sector over the past two years. However, this may not yet be reflected in landlord registration figures due to the three-year renewal cycle.

In the survey, landlords were asked how they will go about withdrawing their properties from the private rented sector.

For 43% of properties the landlord will serve notice to evict their tenants. For 27% of properties, the landlord will wait until the tenants choose to move out.

According to the survey, 30% will be sold to another landlord with tenants in place. Last year this figure was 22% which suggests that selling properties with tenants in place is becoming a more popular option.

Landlords raising rents

According to the report, more than half of landlords have raised rents due to the introduction of rent controls.

The report says 61% of landlords increased rent on their tenanted properties in 2024, up from 45% in 2023. A previous survey from December 2022 revealed that before the government imposed restrictions on rent increases, only 8% of landlords raised rents annually.

However, despite these increases, more than 60% of tenants are still paying rent below market value.

The survey also reveals that landlords are a mature population with 84% aged 50 and above. Just 3% of respondents were aged below 40. SAL says the very low figure does raise concerns about the future of the PRS and whether there will be sufficient numbers of landlords to accommodate the demand for housing in the sector in decades to come.

Impact of rent controls

The Scottish Conservatives have raised concerns over the impact rent controls will have on the private rented sector in Scotland and have called for more investment.

Watch the video below with Housing Spokesperson for the Scottish Conservatives Meghan Gallacher.

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