Build To Rent (BTR) refers to the emerging sub-market in private rented residential stock, designed specifically for renting rather than for sale, typically owned by institutional investors and managed by specialist operators.
With the shortage of housing across Scotland, acutely felt in Edinburgh and Glasgow, there is a strong case for BTR considering these market conditions. On a 5-year basis, the compound annual growth rate of private sector rents is 5% in Glasgow and 4% in Edinburgh. Time to let has also plunged, down from its normal 25-30 days in both cities to around 10 days in the Q4 2021 Citylets quarterly analysis .
BTR in Scotland has only really emerged as a sector over the past five years, with operational schemes at volume currently concentrated in Aberdeen. In Edinburgh and Glasgow, there is a strong pipeline of stock in planning or under construction (around 10,000 units in total), but to date, only a limited number of units have been made available to the market and are occupied.
However, the Scottish Build to Rent (BTR) sector is continuing to grow. Its membership organisation, the UK Apartments Association (UKAA), has just launched in Scotland, chaired by Gillian McLees, Director of BTR here at Rettie The UKAA has been working on setting up groups across the UK, with a view to helping local BTR markets to develop and grow. Every major UK city now has some level of BTR activity.
Read more about the Build To Rent sector and the work of our Director of BTR Gillian McLees, here .
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The "Living Local with Rettie" campaign highlights the expertise and community commitment of Rettie's team members across Scotland. Through videos featuring dedicated staff in various regions, the series showcases how Rettie's local knowledge, personal connections, and passion for service enhance the client experience and make them a trusted choice in property services.
Last week was a big week in politics north and south of the border. It is going to be a much bigger week this week, when the next US President is decided, but since the impact of that will not affect the Scottish housing market too much (at least in the short-term), we can dispense with it for the time being. The political events from last week that will significantly impact on the Scottish housing market are the UK Budget and the Scottish Government Housing Minister’s announcement on the future direction of the new Housing Bill. We look at both of these in turn briefly below and attempt to draw out likely impacts.
Strong demand – high rent inflation. When considering property as an investment class, the number one priority is ensuring there is demand for your property, and that you can command a strong rent. Never in a generation have we seen such high demand, low supply, and steep rent inflation in Edinburgh & Glasgow