Scotland’s PRS is key to resolving the housing crisis – expert

Scotland’s dire housing shortage requires urgent partnership between the government and private landlords, according to DJ Alexander Ltd.

The lettings and estate agency is calling on Holyrood to view the private rented sector (PRS) as a fundamental pillar in addressing the deepening emergency.

Official figures from the Scottish landlord register show a drop of nearly 1,000 landlords, from 237,717 in August 2024 to 236,737 by February 2025.

Meanwhile, registered properties nudged upwards from 349,791 to 350,824, hinting at larger investors stepping in as smaller landlords retreat.

Landlord and tenant choice

The firm’s chief executive, David Alexander, said: “Property investors and landlords have a choice.

“They can invest their money anywhere they choose in the UK or elsewhere. Tenants don’t have that choice.

“They are unlikely to be able to travel around the UK to work and live so they must find a home in a specific area.”

Treat PRS equally

Mr Alexander went on to criticise the government’s tendency to marginalise the PRS, treating it as less vital than social housing.

But with waiting lists for council homes in the hundreds of thousands and new construction faltering, Mr Alexander sees private rentals as a critical solution.

He said: “The PRS is the main source of homes for people coming to Scotland to work or from areas where they have not been resident for long.

“The social housing sector is largely for those who have lived in an area for decades.”

Mr Alexander also questioned First Minister John Swinney’s plan for a Scottish visa to attract skilled workers.

He asks: “It is unclear how these people will be housed.”

Landlords are needed

With 700,000 Scots living in the PRS, Mr Alexander says the housing system could buckle without landlords.

While the slight uptick in rental properties is positive, Mr Alexander stressed it’s nowhere near enough.

He said: “The reality is, however, that the number of properties in the PRS should be increasing substantially each year if we are to meet the pent-up demand for housing.”

His firm’s data shows that with 24% of early 2025 home purchases driven by buy to let investors, he says there is landlord appetite for investment, if properly encouraged.

However, he warns that measures like the recent 1% above-inflation rent cap could scare off investors.

He says: “Without enormous investment from the PRS the current housing emergency will not be resolved in the short to medium term and tens of thousands of people will find themselves unable to find a home in the next five years.”