Press Releases

• The number of Build-to-Rent (BtR) homes under construction across Scotland continues to plunge, with a 15% fall across comparable quarters
• On this trajectory Scotland will soon exhaust its delivery pipeline as more schemes complete than start and sentiment to commence remains depressed
• SPF cites this as further evidence of the chilling effect of rent control proposals and calls for BtR exemption in response in Housing (Scotland) Bill

Latest analysis from the Scottish Property Federation (SPF) and Savills has shown a continued decline in the delivery of Build to Rent homes across Scotland, with a 15% drop the number of units under construction in Q2 2025 when compared to the same period last year. This takes the total number for BtR units under construction down to 2,101 from the prior year figure of 2,472 homes.

The decline comes despite recent statements from the Scottish Government encouraging investment into residential, including Build to Rent, and further highlights the damaging impact potential proposals around rent controls have had on investor sentiment. This can be evidenced by the fact that 11,103 BtR homes in Scotland remain stuck in planning and are not being translated into new construction activity.

The result of this continues to see the number of BtR completions significantly exceeded those under construction, with a 16% increase of new developments being finished in Q2 2025 compared to Q2 2024. While this is a welcome increase, this further highlights the real challenge the Scottish BtR sector continues to face is one of pipeline exhaustion.

While the slight change in tone from the Scottish Government is welcome, the continued slowdown in construction activity, and the stunted growth of new schemes being taken through planning, are undoubtedly the consequence of the diminished confidence of investors and challenging economic conditions.

In response, the SPF in its submission to the Housing (Scotland) Bill consultation on how powers within the Bill could be used to exempt certain types of properties from rent control, is urging that the Build to Rent sector be issued with blanket exemption.

David Melhuish, Director Scottish Property Federation, said:

“The continued decline in the number of BtR schemes starting on site, reflect that persistent policy uncertainty, especially around rent controls, continues to have a damaging impact upon investor confidence in Scottish BtR.  On this trajectory Scotland will soon exhaust the pipeline of new BtR developments, as completions continue to exceed commencements. To restore investor confidence and to kick start new supply of rental homes, we are calling as part of our response to the Scottish Government’s recent Housing consultation, for Built to Rent/Mid- Market rent to be granted an exemption from rent controls across Scotland.”