Over half the rental homes sold are lost from the private rented sector (PRS) and become owner occupied instead.
That’s according to new research from SafeDeposits Scotland Charitable Trust.
The Trust’s latest ‘Voice of the Landlord Survey’ looks only at properties within Scotland, and found that 17% of rental units sold remained in the sector in 2025, up from 9% in 2024, but 57% moved into owner-occupation.
And the same survey shows that landlords in Scotland are more likely to sell property than purchase them.
Some 14% of landlords sold property in the past year, compared with just 5% who purchased.
Among landlords 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%).
For those relatively few landlords purchasing property, the main motivation was a preference to invest in property rather than other investments (52%).
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 the rental market despite wider uncertainty.
However, the research also highlights a growing communication gap around policy reform.
Just 41% of landlords feel able to keep up with regulatory changes, down from 51% in 2024, whilst only 21% believe changes to the law are clearly communicated.
Dr Jennifer Harris, Head of Policy at SafeDeposits Scotland, says: “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.
“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.
“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.”
This article is taken from Landlord Today