The variety of build-to-rent (BtR) properties underneath development throughout Scotland has dropped by 26% up to now 12 months, based on the newest evaluation from the Scottish Property Federation (SPF) and Savills.
Along with the “vital” decline within the variety of items underneath development within the first quarter of this 12 months when in comparison with the identical interval final 12 months, Scotland has recorded zero development within the variety of new BtR schemes being submitted for planning.
The report says the slowdown in development exercise, and the shortage of development of recent schemes being taken by means of planning, are the consequence of the continued hire management proposals and reflective of the diminished confidence of traders.
The overall variety of BtR items underneath development in Q1 2025 is right down to 1896, from the prior 12 months determine of 2545 properties. This compares to England, the place though development exercise has slowed, the decline is much much less vital and is, partially, countered by a development sooner or later pipeline of schemes working their manner by means of the planning system.
The dearth of recent schemes within the planning pipeline sees the overall variety of items standing at 10,829. This compares unfavourably with England which has recorded an increase of 6%.
On the overall variety of new BtR properties delivered as current schemes are constructed out, there was a rise throughout Scotland of 1,152 properties (43%), in comparison with 15,786 (15%) in England.
David Melhuish, Director Scottish Property Federation, mentioned: “This disappointing proof of zero development in new BtR purposes is unfortunately not stunning and echoes what we now have been saying for years as a sector to the Scottish Authorities.
“These figures are the pure consequence of an absence of investor confidence over the past three years in the way forward for Scotland’s build-to-rent sector on account of persistent coverage uncertainty, particularly round hire controls.
“Wanting ahead, we urge the Scottish Parliament to conform to amend the Housing Invoice according to the federal government proposals on an inflation associated and capped hire management mechanism. If launched with incentives for brand new construct rental properties, together with mid-market rental properties, this may we imagine start to revive investor confidence in the way forward for Scotland’s BtR sector.
“Whereas development exercise has slowed throughout the entire of the UK, Scotland has seen probably the most vital fall. Until the Scottish Authorities strikes to revive investor confidence by means of supporting new construct and amending a few of its extra controversial insurance policies equivalent to between tenancy hire controls, then we’ll quickly exhaust the brand new provide pipeline of BtR properties as no new planning purposes are coming ahead and people with approval are merely not being progressed.”
