The proportion of rental homes sold in Scotland remaining in the private rented sector has nearly doubled over the past year, according to new research from SafeDeposits Scotland.

It found that 17% of sold rental properties stayed in the sector in 2025, up from 9% in 2024, while 57% moved into owner-occupation. However, while 14% of landlords sold property in the past year, only 5% bought it.

Among those who sold property, the most common reason cited was proposed regulatory changes (38%), followed by negative attitudes towards landlords (28%) and repair and maintenance costs (26%).

The survey also found that landlords aged 18-44 were the most likely age group to have bought property in the past year, suggesting that younger investors still see long-term potential in Scotland’s rental market despite wider uncertainty.

Alarming

While it’s encouraging that more properties are remaining available for rent, it’s alarming that landlords are continuing to sell up at such a rate, Scottish Association of Landlords chief executive, John Blackwood, tells LandlordZONE.

“Our 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.”

Gap

SafeDeposits Scotland’s research also highlights a growing communication gap around policy reform, as only 41% of landlords say they feel able to keep up with regulatory changes, down from 51% in 2024.

Head of policy, Dr Jennifer Harris, believes 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,” adds Harris.

“If the sector is to attract and retain the next generation of landlords, clear communication and practical support around policy changes will be essential to give responsible landlords the confidence to invest for the long term.”

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