Propertymark has voiced serious concerns over the ongoing decline in rental properties available in rural Scotland, warning that recent government measures may be contributing to the problem.
According to Scottish Land & Estates (SLE), a leading business and landowner organisation, the introduction of rent controls by the Scottish Government has discouraged landlords from continuing to invest in rural properties.
Between 2022 and 2025, 14 largely rural council areas recorded a drop in private rental homes, following the government’s declaration of a housing emergency and the implementation of regulatory caps on rents.
SLE reports that legislation aimed at protecting tenants has inadvertently made the rental market more challenging, particularly in areas outside Scotland’s major cities.
The most significant decline was seen in the Highlands, where over 1,000 privately rented homes are now unavailable compared with 2022. Meanwhile, Argyll and Bute recorded a 24% decrease in available rental properties since 2024.
Anna Gardiner, senior policy adviser at SLE, commented: “Measures introduced to protect tenants have, unfortunately, had the opposite effect in rural areas. Instead of increasing access to rental properties, we are seeing fewer homes available for those who need them.”
She added that SLE had repeatedly warned the Scottish Government that excessive regulation, including rent caps, would deter investment, and the current data confirms these concerns.
A lack of understanding of rural housing markets has further compounded the shortage, with smaller communities being particularly vulnerable to reductions in available rental properties. Gardiner emphasised the importance of rural impact assessments before implementing any new housing policies.
SLE members currently manage around 13,000 affordable homes for rent across rural Scotland. Many new developments are also underway, supporting local economies and sustaining vital community life in these regions.
In its response to the Housing Scotland Bill, SLE highlighted the stark differences between urban and rural housing markets. Factors such as small-scale landlords, seasonal pressures, tied housing, off-grid properties, and higher operating costs all make rural investment less appealing.
The organisation urges the Scottish Government to engage more closely with rural housing providers to develop a rental market that is fair, sustainable, and resilient for both tenants and landlords.
Rural landlords face additional pressures due to higher maintenance costs and a shortage of available tradespeople, making it more difficult to maintain properties to acceptable standards and keep them on the rental market.
Gardiner warned that forthcoming regulations, including the Minimum Energy Efficiency Standards, could further drive responsible landlords away from the market, worsening housing shortages and negatively affecting tenants.
She stressed that all future legislation should be preceded by thorough rural impact assessments and that policymakers must recognise the diversity of rental properties in rural areas. Only a coordinated, well-informed approach can create a balanced and sustainable rental sector.
Propertymark concluded by reiterating its long-standing position: imposing rent restrictions without addressing supply and operational costs can produce unintended consequences, impacting tenants, landlords, and the agents who facilitate the rental market.
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