The Scottish Government needs to encourage and work more with the private rented sector (PRS) to resolve the current housing emergency according to a leading property firm. 

DJ Alexander Ltd, which is the largest lettings and estate agency in Scotland, said that if there is to be an effective resolution to the housing emergency then the government in Scotland needs to embrace the PRS and acknowledge that it is an integral part of the housing sector north of the border.

The latest figures from the Scottish landlord register show that the number of landlords has fallen by almost 1,000 between August 2024 and February 2025 dropping from 237,717 to 236,737. However, the number of registered properties has increased from 349,791 to 350,824.

This would indicate that the number of individual and smaller landlords is shrinking in the market with the number of properties increasing through investment from larger property investors and corporate entities.

David Alexander, the chief executive officer of DJ Alexander Scotland, commented: “Property investors and landlords have a choice. They can invest their money anywhere they choose in the UK or elsewhere. Tenants don’t have that choice. They are unlikely to be able to travel around the UK to work and live so they must find a home in a specific area.”

“Too often the Scottish government seems to assume that the private rented sector is an adjunct to the housing sector rather than being a crucial part of it. With a social housing waiting list of several hundreds of thousands and the continued falling number of new build homes there is little sign that a solution is in sight. The PRS is, therefore, one of the main answers to the current housing emergency.”

Alexander continued: “The PRS is the main source of homes for people coming to Scotland to work or from areas where they have not been resident for long. The social housing sector is largely for those who have lived in an area for decades. First Minister John Swinney has just proposed a new Sottish visa to encourage workers from elsewhere to fill the skills gap in Scotland, yet it is unclear how these people will be housed. Furthermore, it is uncertain what the Scottish Government would do if the 700,000 people who currently live in the PRS no longer have a home to live in.”

“The latest figures for the number of registered landlords shows a decline in their number indicating more individual landlords are withdrawing from the market but a slight uptick in the number of available properties. While this is welcome news the numbers are far too low to make any real difference to the market.”

“The reality is, however, that the number of properties in the PRS should be increasing substantially each year if we are to meet the pent-up demand for housing. Interestingly, our own figures show a substantial appetite to invest in the PRS in Scotland with 24% of our purchases in the first six weeks of this year being undertaken by buy to let investors. So, the interest is there but needs to be encouraged further if this is to be sustainable.”

David concluded: “Without enormous investment from the PRS the current housing emergency will not be resolved in the short to medium term and tens of thousands of people will find themselves unable to find a home in the next five years. Unfortunately, last weeks’ commitment to a rent cap of 1% above inflation is only likely to continue the uncertainty for property investors and landlords. They may decide that a government which is not fully committed to the private rented sector is a place that is not worth the risk of investment. Without the PRS the Scottish Government will be unable to meet future housing demands or resolve the current emergency.”