Rent controls and excessive legislation worsen Scottish housing crisis

Legislation to help tenants in Scotland has backfired as the number of rural rental properties records a dramatic drop.

Scottish Land & Estates (SLE) research reveals a decline in availability of private rental homes was recorded in 14 predominantly rural local authority areas between 2022 and 2025.

SLE warns the Scottish government rent controls and excessive regulation have deterred investment in the private rented sector.

Measures introduced to help tenants have backfired

According to SLE’s research, there are 1,000 fewer homes available to rent privately in the Highlands than in 2022.

In Argyll and Bute, a 24% reduction has been recorded since the government declared the housing emergency just last year.

Anna Gardiner, senior policy adviser, business and property for SLE, blames rent controls and government legislation for the drop.

She said: “Well-intentioned regulatory measures introduced to help tenants have backfired, particularly in rural Scotland. The data shows a reduction in available rental properties, demonstrating that these measures simply are not working.

“We warned the Scottish government that rent caps and excessive regulation would deter investment in the rental sector and unfortunately, that is exactly what has happened.

“A lack of understanding of the rural housing landscape has exacerbated the shortage of rented homes in rural areas, which has a particular impact on the future of fragile communities. Rural impact assessments are required from the outset as housing policy is being discussed and developed.”

Driving responsible landlords out of the rental market

Ms Gardiner adds more landlords will leave the private rented sector unless the Scottish government takes urgent action.

She said: “With even more regulation in the pipeline such as the Minimum Energy Efficiency Standards, we are at risk of driving responsible landlords out of the rental sector, exacerbating housing shortages and harming tenants.

“We would urge the Scottish government to conduct a rural impact assessment before introducing any future legislation and to recognise that there is a huge diversity of rental property in rural areas, which means a coordinated approach is required to achieve a fair and balanced rental sector.”

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