More landlords in Scotland sold property than bought over the past year, with disposals running at nearly three times the rate of new investment. Research from SafeDeposits Scotland Charitable Trust found 14 percent of landlords disposed of rental homes in the last 12 months compared with just 5 percent who expanded their portfolios.
The findings come from the Trust’s Voice of the Landlord Survey, which also revealed that the share of sold rental properties remaining within the private rented sector has climbed. In 2025, 17 percent of properties changing hands stayed in the PRS, up from 9 percent the previous year. However, 57 percent transferred into owner-occupation, removing them from the rental market entirely.
Policy concerns drive sales
Landlord motivations for selling were led by policy concerns for 38 percent of Scottish landlords. Negative attitudes towards landlords followed at 28 percent, with repair and maintenance costs mentioned by 26 percent. The pattern reflects similar trends across the UK where regulatory uncertainty is prompting some landlords to exit.
Dr Jennifer Harris, head of policy at SafeDeposits Scotland Charitable Trust, said the research paints a mixed picture. “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,” she said.
Harris added that 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.”
Younger buyers see long-term value
Despite the net exodus, more than half of buyers (52 percent) said property remained their preferred investment over alternative assets. Landlords aged 18 to 44 were the most active buyers, suggesting they see long-term value in the PRS despite legislative uncertainty. This echoes recent council initiatives to attract landlords into partnership schemes.
However, the research highlights a widening communication gap around reform. Only 41 percent of landlords said they felt able to keep pace with regulatory change, down from 51 percent in 2024. Just 21 percent believe legal updates are communicated clearly.
SAL calls for government support
John Blackwood, chief executive of the Scottish Association of Landlords, said the figures show the Scottish government should do more to help private landlords. “These figures reflect a time of change and uncertainty in the Scottish private rented sector,” he said.
“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. SAL’s data, drawn from a survey of our members, indicates that one in five landlords expects their business to shrink over the next three years.”
Blackwood added that the Scottish government should work to stabilise the sector and encourage further investment “to stem the number of landlords leaving and to ensure more properties are available for rent.”
Editor’s view
The Scottish PRS continues to shrink, and the data suggests the trend has further to run. With one in five landlords expecting their portfolio to contract over the next three years, tenants in Scotland face an increasingly competitive market. The silver lining – more sold properties staying in the rental sector – may simply reflect other investors picking up bargains from exiting landlords.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 19 February 2026
Sources: SafeDeposits Scotland Charitable Trust, Scottish Association of Landlords
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