Approximately ten landlords are leaving Scotland's private rental market each day in the aftermath of new tenant-focused legislation, according to official figures. In the six months after the Housing (Scotland) Act was enacted in November, nearly 3,000 properties were removed from the market.
The legislation introduced measures such as potential rent caps, stricter eviction processes for non-payment, and tenant rights to modify properties and keep pets. Critics argue these reforms, intended to stabilize rents and protect tenants, are instead contributing to a squeeze that could drive up costs for existing renters.
Scottish Conservative housing spokesman Tim Eagle stated that the reforms are causing "untold damage" to the rental market, predicting further landlord departures, reduced availability, and increased rents. He characterized the policy as a spectacular failure.
The Housing (Scotland) Act received backing from the SNP, Greens, Labour, and Liberal Democrats when it passed Holyrood last autumn. However, recent Scottish Government data shows a reduction in registered landlords from 232,706 to 230,665 by May of this year, a decrease of 2,041. Concurrently, the number of available rental properties declined by 2,958, falling from 350,637 to 347,679.
While specific regional impacts are not detailed, several areas have reported rent increases exceeding the current 3 percent inflation rate. For instance, West Lothian saw an 8.1 percent rent surge over the past year, with other regions like Dumfries and Galloway, Ayrshire, East Dunbartonshire, West Dunbartonshire, the Highlands, and Glasgow also reporting increases above inflation.
These measures are the latest in a series of property market interventions by the SNP and Green parties. A previous rent cap implemented between October 2022 and March 2025 was also cited by some as a factor in rising housing costs in certain areas. The government declared a housing emergency in 2024 but has struggled to meet its targets for affordable home construction.
John Blackwood, chief executive of the Scottish Association of Landlords, confirmed that the association had warned of negative impacts on housing supply and that their concerns had been validated. He urged the Scottish Government to collaborate with landlords to rebuild market confidence and encourage investment.
A Scottish Government spokesperson defended the Housing Act, describing it as a system of "long-term, evidence-based rent controls" designed to stabilize rents in areas with steep increases. The spokesman added that the act aims to protect landlords' property rights while supporting continued investment and maintaining the quality of rental homes.