Rettie’s established research team were commissioned by the British Property Federation to undertake research on the Scottish Government’s rent freeze and its impacts, particularly on the Build to Rent (BTR) sector.

The results from this research show that Scotland is falling behind the rest of the UK in terms of delivery in this sector, with rent controls and political uncertainty affecting investor appetite to fund and deliver Build to Rent homes. 

Key Findings:

  • £3.2bn of investment in new homes is estimated to be “on hold” and “at risk”.  

  • None of the investors surveyed believe Scotland is currently an attractive place to invest. 

  • If the main Scottish cities had been completing BtR units at a similar rate to other leading UK cities, Scotland would now have around 15,000 additional new homes for rent. 

  • Glasgow ranks 89th in the UK for rate of completed new rental homes. It should be 3rd based on a recent Colliers report.

  • Edinburgh is currently 72nd when it should be 2nd.

    build to rent infographic

Our work clearly shows the potential for BTR in Scotland as part of the answer to the housing crisis. The sector has been stymied by what investors consider to be high level of political risk. The emergency legislation has elevated these risks and less supply will come forward as a result, which will have consequences of affordability and availability of property to rent in Scotland.

Dr John Boyle MRICS
Director - Research & Strategy