Landlord Sales Outpace Purchases in Scotland

Research from SafeDeposits Scotland Charitable Trust shows a notable shift in Scotland’s private rented sector (PRS), with 14% of landlords having sold rental properties in the last 12 months, compared to just 5% who expanded their portfolios by buying additional homes. This trend highlights a cautious approach among landlords amid ongoing regulatory and market uncertainties.

Properties Staying Within the Rental Market

The Trust’s Voice of the Landlord Survey also reveals that an increasing proportion of sold rental homes remain within the PRS. In 2025, 17% of properties changing hands stayed as rental properties, up from 9% the previous year. However, the majority—57%—were converted to owner-occupation, indicating a significant transfer of rental stock out of the sector.

Reasons Behind Landlords’ Decisions to Sell

Policy concerns were the leading motivation for 38% of Scottish landlords choosing to sell, reflecting unease about the regulatory environment. Negative public attitudes towards landlords influenced 28%, while 26% cited rising repair and maintenance costs as a factor. These challenges contribute to a fragile confidence in the sector, despite some landlords continuing to invest.

Investment Interest Among Younger Landlords

Despite the overall trend of sales exceeding purchases, younger landlords aged 18 to 44 remain the most active buyers. More than half of buyers (52%) still consider property their preferred investment compared to other asset classes. This suggests that some landlords see long-term value in the PRS, even amid legislative uncertainty.

Communication Gaps on Regulatory Changes

However, the research highlights a widening communication gap regarding reforms. Only 41% of landlords felt able to keep pace with regulatory changes, down from 51% in 2024, and just 21% believe legal updates are communicated clearly. This lack of clarity may contribute to the cautious stance many landlords are adopting.

Industry Response and Calls for Government Action

John Blackwood, chief executive of the Scottish Association of Landlords (SAL), commented on the findings, stating: “These figures reflect a time of change and uncertainty in the Scottish private rented sector. While it is encouraging that more properties are remaining available for rent, it is alarming that landlords are continuing to sell up at such a rate.”

He added that SAL’s own data indicates one in five landlords expects their business to shrink over the next three years. Blackwood urged the Scottish government to take steps to stabilise the sector and encourage further investment to reduce the number of landlords leaving and maintain rental property availability.

What This Means for Landlords and Agents

For landlords and letting agents operating in Scotland, these trends suggest a need for careful consideration of investment decisions amid ongoing policy changes. The increased rate of sales may reduce rental stock availability, potentially impacting rental market dynamics. Staying informed about regulatory developments and engaging with landlord organisations could be vital to navigating this period of uncertainty.

Suggested internal link anchors

• private rented sector
• landlord sales
• rental property investment
• regulatory change
• Scottish Association of Landlords
• landlord confidence
• property maintenance costs
• owner-occupation trends
• landlord communication
• rental market stability

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/