Scottish Land & Estates (SLE) is reporting a fall in the number of properties for rent in rural Scotland.
The business group says this is just as Scottish Government interventions have dissuaded landlords from investing in the sector, it claims.
A decline in available private rental homes was recorded in 14 mostly rural council areas between 2022 and 2025, despite the Scottish Government declaring a housing emergency and introducing rent controls.
The legislation has made the situation worse, notably in rural areas, SLE reports.
The largest drop was in the Highlands, where there are over 1,000 fewer homes available to rent privately than in 2022.
In Argyll and Bute, a 24% fall has been recorded since 2024.
Anna Gardiner – SLE senior policy adviser – says: “Well-intentioned regulatory measures introduced to help tenants have backfired, particularly in rural Scotland.
“The data shows a reduction in available rental properties, demonstrating that these measures simply are not working.
“We warned the Scottish Government that rent caps and excessive regulation would deter investment in the rental sector and unfortunately that is exactly what has happened.
“A lack of understanding of the rural housing landscape has exacerbated the shortage of rented homes in rural areas, which has a particular impact on the future of fragile communities.
“Rural impact assessments are required from the outset as housing policy is being discussed and developed.”
SLE members provide around 13,000 affordable homes for rent in rural Scotland, with a large number of new developments in the pipeline, supporting rural economies and sustaining community life.
Its consultation response to the Housing Scotland Bill highlighted the significant differences between the housing market in urban and rural areas, with small-scale landlords, tied housing, seasonal pressures, operational challenges, off-grid properties and increased costs in rural areas dissuading investment by property owners.
SLE wants the Scottish government to engage with rural housing providers in order to achieve a sustainable, fair, and resilient private rented sector.
Property maintenance costs are higher in rural areas than in towns and cities, and there is a scarcity of tradespeople in many areas adding to pressure on those looking to make a rental home available.
Gardiner concludes: “With even more regulation in the pipeline such as the Minimum Energy Efficiency Standards, we are at risk of driving responsible landlords out of the rental sector, exacerbating housing shortages and harming tenants.
“We would urge the Scottish government to conduct a rural impact assessment before introducing any future legislation and to recognise that there is a huge diversity of rental property in rural areas, which means a coordinated approach is required to achieve a fair and balanced rental sector.”
This article is taken from Landlord Today