The UK Government’s 2025 analysis found that 83pc of landlords were small landlords, with small-scale retired landlords who typically owned modest portfolios of one or two properties accounting for around a third of this group.
Mr Perrin added: “Rent reform may give tenants greater security but it does not make renting more affordable. The uncomfortable reality is that you cannot regulate your way out of a supply shortage.
“[Small landlords] are leaving the market as a result of greater tax costs, increased borrowing costs since September 2022, Making Tax Digital requirements, and greater regulation.
“If more landlords decide to sell, the private rental supply becomes even tighter and ultimately tenants pay the price through higher rents.
“If policymakers genuinely want rents to become more affordable, the focus needs to be on increasing the supply of rental homes and making it economically viable for landlords to provide them.”
Shirley-Anne Somerville, Scotland’s Cabinet Secretary for Social Justice and Housing, said: “We recognise the importance of taking action where private rents are rising steeply, which is why we have introduced a national system of long-term rent controls as part of the Housing Act.
“Most private tenants already have a right to seek a review of a rent increase if they consider it too high. I encourage tenants concerned about a rent increase to apply for a review.”
