Growing proportion of rental homes sold remaining in private rented sector – London Wallet

The proportion of rental homes sold in Scotland that remain in the private rented sector has almost doubled in the past year, according to research from SafeDeposits Scotland Charitable Trust.

Its latest Voice of the Landlord Survey found that 17% of rental properties sold in 2025 stayed within the sector, up from 9% in 2024, while 57% moved into owner-occupation.

Despite more properties remaining in the sector after sale, landlords were still more likely to sell than buy. Fourteen per cent reported selling a property in the past year, compared with 5% who made a purchase.

Among those who sold, the most commonly cited reason was proposed regulatory changes (38%), followed by negative attitudes towards landlords (28%) and repair and maintenance costs (26%).

For those buying 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 Scotland’s rental market despite wider uncertainty.

However, the research also highlights a growing communication gap around policy reform. Just 41 per cent of landlords feel able to keep up with regulatory changes, down from 51 per cent in 2024, whilst only 21 per cent believe changes to the law are clearly communicated.

Dr Jennifer Harris, head of policy at SafeDeposits Scotland, said: “This research paints a mixed picture of Scotland’s private rented sector. 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.”