Only 9% of properties sold by landlords in Scotland in a recent 12-month period returned to the private rented sector, a new survey has found.

SafeDeposits Scotland Charitable Trust reports that 14% of landlords have ended or not renewed tenancies in the year to October 2024, with 46% of this group deciding to sell their property. They blamed proposed regulatory changes, changes to tax regimes, and negative attitudes towards landlords.

Many of these houses ended up as owner occupied housing (62%) while 9% returned to the PRS and just 2% were repurposed to provide affordable homes. Another 2% ended up in the short-term rental market.

Selling buy-to-let properties

Its poll of 1,100 landlords found that nearly a third are looking to sell their properties, while 42% intend to maintain their current portfolios and only 7% want to acquire additional properties. The trust reports that those planning to buy tend to have less experience in the sector, while those intending to sell are generally more experienced. Landlords who target tenants living with disabilities, tenants in receipt of Housing Benefit, or tenants housed by local authorities are significantly more likely to be looking to acquire properties.  

It also found that 56% of landlords increased rents in the 12 months, largely due to increased mortgage and maintenance costs (79%) and to align with local market rents (34%).

Meanwhile, nearly a quarter of landlords had never heard of the Housing (Scotland) Bill (2024) currently going through the Scottish Parliament and another 36% were aware of the Bill but knew nothing of its proposals.

Dr Jennifer Harris, head of policy at SafeDeposits Scotland, said: “Work is clearly needed to improve the way changes to the sector are communicated to ensure all landlords know what is expected of them, and tenants understand, and can enforce, their rights.”