David Fell, of Hamptons, said Scottish landlords have been “squeezed” by the introduction of rent caps.
He added: “Their relative inability to increase rents in the face of rising costs has pushed growing numbers into the red. While most rental increases have been capped at 3pc, many landlords have seen their mortgage costs double which is unsustainable beyond the very short term. This environment has deterred new landlords, both individual investors alongside those building large numbers of new homes specifically for the rental market.
“Long term, any sort of cap on rental growth will only serve to reduce the number of rental homes on the market. While a cap will probably control costs for existing tenants, it will make it very difficult for someone trying to find a place to rent for the first time.”
Anna Gardiner, a policy adviser on rural property for landowners’ trade body Scottish Land & Estates, said: “The Scottish Government had an opportunity to work with both landlords and tenants to attempt to return confidence to the private rented sector – and thereby improve how things work for both groups.
“Instead, the new legislation appears to compound the mistakes that have led to a crash in the number of properties available to rent in rural areas, and tenants being unable to find accommodation to suit their needs.
“The lack of available housing, particularly in the rented sector, is a key driver of rural depopulation.”