Press Releases

• The number of Build-to-Rent (BtR) homes under construction across Scotland has plunged by 26% in the past 12 months
• With a future new homes supply crunch looming due to zero growth in new schemes progressing through the planning system
• SPF cites this as further evidence of the chilling effect of rent control proposals

Latest analysis from the Scottish Property Federation (SPF) and Savills has shown a continued marked decline in Scottish Build to Rent construction activity, with a 26% drop in the number of units under construction in Q1 2025 when compared to the same period last year.

This takes the total number for BtR units under construction in Q1 2025 down to 1896, from the prior year figure of 2545 homes.  This compares to England, where although construction activity has slowed, the decline is far less significant and is, in part, countered by a growth in the future pipeline of schemes working their way through the planning system.

In contrast, Scotland has recorded zero growth in the number of new BtR schemes being submitted for planning, with the total number of units standing at 10,829. This compares unfavourably with England which has recorded a rise of 6% between Q1 2024 and Q1 2025.

On the total number of new BtR homes delivered as existing schemes are built out there has been a welcome increase across Scotland of 1,152 homes (43%), compared to 15,786 (15%) in England.   The challenge the Scottish BtR sector now faces is one of pipeline exhaustion. This is due to the drop-off in on-site activity and the dearth of new schemes being submitted for approval and granted planning consent.

The slowdown in construction activity, and the lack of growth of new schemes being taken through planning, are undoubtedly the consequence of the ongoing rent control proposals and reflective of the diminished confidence of investors.

David Melhuish, Director Scottish Property Federation, said:

This disappointing evidence of zero growth in new BtR applications is sadly not surprising and echoes what we have been saying for years as a sector to the Scottish Government. These figures are the natural consequence of a lack of investor confidence over the last 3 years in the future of Scotland’s Build to Rent sector as a result of persistent policy uncertainty, especially around rent controls.

Looking forward, we urge the Scottish Parliament to agree to amend the Housing Bill in line with the government proposals on an inflation related and capped rent control mechanism. If introduced with incentives for new build rental homes, including mid-market rental homes, this will we believe begin to restore investor confidence in the future of Scotland’s BtR sector.

While construction activity has slowed across the whole of the UK, Scotland has seen the most significant fall. Unless the Scottish Government moves to restore investor confidence through supporting new build and amending some of its more controversial policies such as between tenancy rent controls, then we will soon exhaust the new supply pipeline of BtR homes as no new planning applications are coming forward and those with approval are simply not being progressed.