A review of private rented housing has highlighted the potential greater role Scotland's private landlords could play in the country's housing system.

Key findings of the review, the most extensive study of the sector ever undertaken in Scotland, include a marked increase in demand for private lets from students, young professionals, and migrant workers.

High levels of satisfaction with landlords and let property were recorded among private tenants, although issues were raised about repairs and tenancy deposits.

Landlords were positive about their experience but had concerns about the length and cost of legal action to seek repossession, and the administration of housing benefit.

Housing Minister Alex Neil said: "This review is timely as the current economic downturn shows demand for private housing increasing at a significant rate.

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"It is imperative we develop a modern and effective private rented sector, capable of delivering the supply and standard of housing that the people of Scotland expect.

"The findings are encouraging, but we recognise there is still work to be done. Private landlords have the potential to play a greater role in providing accommodation for homeless households in particular."

Mr Neil said the government is also pressing UK Ministers to change tax laws to attract institutional investment to private renting to encourage much-needed investment in Scotland's housing system.

The Review of the Private Rented Sector was announced in Firm Foundations, the discussion document on future housing policy, in October 2007. It included research and analysis commissioned externally, as well as a range of analytical work carried out within the Scottish Government.

The review had three main aims. Firstly to undertake a general stock take of the private rented sector (PRS) in Scotland, in order to provide a detailed primary evidence base and to inform the Scottish Government's understanding of the effectiveness of the current legislative and policy regime.

It also aimed to look at the role of the sector in housing low-income families and individuals on benefits, including those presenting as homeless.

The final aim was to consider best practice in relation to strategic engagement between local authorities and the private rented sector; explore options for increasing engagement; and examine ways that advice and support is provided locally to raise standards in the sector.

(GK/JM)