Britain’s private rented sector has grown by 6.6% during the last decade, however both Scotland and Wales have seen big falls in rental supply.

New research by LegalforLandlords reveals that the PRS increased from 2.98 million rental properties to 3.17 million between 2015 and 2025, driven by growth in England, where the number of rental properties went up by more than 240,000 homes (10.1%). In contrast, both Scotland and Wales have seen rental stock fall by 6.3% and 10.6% respectively.

Edinburgh letting agent DJ Alexander reports that the number of private landlords in Scotland fell from 239,566 in January 2022 to 230,250 in March 2026. The pace of decline has accelerated over the last year, with landlord numbers dropping by 6,228 between March 2025 and March 2026. It says the number of properties in the sector dropped by 12.3% from a peak of 400,492 homes in March 2021 to 351,370.

Savills

New Savills’ data shows how Scotland’s housing emergency is also being compounded by a sharp decline in new homes, as completions fell by 13% in 2025 to just 17,336 homes - the second lowest annual total since 2016.

Scottish Association of Landlords chief executive, John Blackwood, (pictured left) says a shrinking private rented sector in Scotland means higher rents and fewer properties available. “These figures show how important it is that the Scottish government encourages growth and investment in our sector, so that landlords choose to expand their portfolios and provide more homes,” he tells LandlordZONE.

Yield

Meanwhile, rents across Britain have increased by 45% to £1,343 per month since 2015 but average yield has dropped slightly from 6.2% in 2015 to 6%.

Sim Sekhon, group CEO at LegalforLandlords, says while rental supply has increased overall, the divergence between England, Scotland, and Wales is particularly striking. “At the same time, rents have risen substantially as demand has continued to outpace available housing, creating affordability challenges for many tenants,” he adds. “What’s notable is that despite rents increasing by more than 45%, landlords have not seen a corresponding increase in yields because property values have risen even faster.”

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