In a startling revelation, a recent survey conducted by the Scottish Association of Landlords (SAL) indicates a potential loss of around 22,000 homes available for rent in Scotland at the onset of 2024 compared to just a year ago. SAL, the largest landlord membership body in the country, attributed this substantial decline to perceived hostility from government and politicians towards landlords, coupled with apprehensions surrounding proposed regulations in the sector.
The survey, conducted among SAL members in December 2023, sought insights into the size and changes in their rental property portfolios. The findings suggested that respondents had already withdrawn an average of 6.4% of their properties from the sector throughout 2023. Extrapolating this figure across the entire private rented sector (PRS) in Scotland, it suggests a potential loss of approximately 21,760 homes, equivalent to 6.4% of the total 340,000 homes in the sector.
Despite the alarming statistics, these losses are not yet reflected in landlord registration figures, which follow a three-year renewal cycle. SAL underscores the reduction in available properties as the primary driver behind the escalating rent levels in the PRS, contributing significantly to Scotland’s ongoing housing crisis.
The survey indicates a worsening situation compared to the previous year, with a foreseen continuation into the future. A significant 56% of respondents expressed intentions to reduce their portfolio size in the next five years, a notable increase from 44% in 2022. Conversely, only 9% plan to expand their portfolios, down from 13% during the same period last year.
John Blackwood, the Chief Executive of SAL, commented on the figures, highlighting the long-standing warnings from landlords about the adverse effects of anti-landlord rhetoric and short-term, ineffective policies. He emphasized that the decline in confidence among landlords is now materializing, resulting in their exit from the sector, diminishing supply, and subsequently driving up costs for tenants.
Blackwood called for a collaborative effort between the Scottish Government and all stakeholders in the sector to promote investment. He emphasized the need for increased social housing, new construction projects, and investments in flexible, high-quality privately rented accommodations to address the escalating challenges in the Scottish housing market.