Scotland’s landlord sales outpace those investing

More landlords in Scotland sold property than bought over the past year, underlining the direction of travel across the nation’s private rented sector.

Research from SafeDeposits Scotland Charitable Trust found 14% of landlords disposed of rental homes in the last 12 months.

That compares with just 5% who expanded their portfolios.

The Trust’s Voice of the Landlord Survey also show that the share of sold rental homes remaining within the sector has climbed.

In 2025, 17% of properties changing hands stayed in the PRS, up from 9% in the previous year.

However, 57% transferred into owner-occupation.

Landlords likely to sell

Dr Jennifer Harris, the trust’s head of policy, said: “This research paints a mixed picture of Scotland’s private rented sector.

“While landlords remain more likely to sell than buy property, it is encouraging that a growing proportion of homes sold are staying within the rental market.”

She added: “At the same time, confidence in the sector appears fragile.

“Younger landlords are still entering the market and investing in property, but many landlords tell us they are struggling to keep up with regulatory change.”

Landlords worry about policies

Landlord motivations for selling were led by policy concerns for 38% of Scottish landlords.

Negative attitudes towards landlords followed at 28%, with repair and maintenance costs mentioned by 26%.

More than half of buyers (52%) said property remained their preferred investment over alternative assets.

Landlords aged 18 to 44 were the most active buyers, suggesting they see long-term value in the PRS despite legislative uncertainty.

However, the research highlights a widening communication gap around reform with only 41% of landlords admitting they felt able to keep pace with regulatory change.

That’s down from 51% in 2024 and just 21% believe legal updates are communicated clearly.

A time of change and uncertainty in the Scottish PRS

Scottish Association of Landlords chief executive, John Blackwood, told Property118 these figures show the Scottish government should do more to help private landlords.

He said: “These figures reflect a time of change and uncertainty in the Scottish private rented sector.

“While it is encouraging that more properties are remaining available for rent, it is alarming that landlords are continuing to sell up at such a rate.

“SAL’s data, drawn from a survey of our members, indicates that one in five landlords expects their business to shrink over the next three years.

“The Scottish government should work to help stabilise the sector and to encourage further investment to stem the number of landlords leaving and to ensure more properties are available for rent.”