Between 2022 and 2025, 14 predominantly rural local authority areas recorded a fall in available private lets, despite the government declaring a housing emergency in 2024 and rolling out a series of rent control measures intended to support tenants. According to SLE, these policies have instead intensified shortages, particularly outside urban centres.

The steepest decline has occurred in the Highlands, where more than 1,000 fewer private rented homes are available compared with 2022. Argyll and Bute has seen a 24% reduction in just a year, following the housing emergency declaration.

Anna Gardiner, SLE’s senior policy adviser for business and property, said the findings show that “well‑intentioned regulatory measures introduced to help tenants have backfired, particularly in rural Scotland,” adding that the data “demonstrates that these measures simply are not working”.

She continued: “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, with real consequences for fragile communities. Rural impact assessments must be built into policy development from the outset.”

SLE members currently provide around 13,000 affordable rural homes, with further developments planned to support local economies and sustain community life.

In its response to the Housing Scotland Bill, the organisation stressed the stark differences between rural and urban housing markets, from tied accommodation and seasonal pressures to off‑grid properties, higher operating costs and the dominance of small‑scale landlords, all of which make investment more challenging.

SLE is urging ministers to work more closely with rural housing providers to build a private rented sector that is sustainable, fair and resilient. Higher maintenance costs and a shortage of tradespeople in many rural areas, it says, add further pressure on landlords trying to keep homes available.