UK: Latest analysis from the Scottish Property Federation (SPF) and Savills has shown a continued decline in Scottish Build-to-Rent (BTR) construction activity.
The research revealed a 26 per cent drop in the number of units under construction in Q1 2025 compared to the same period last year. This takes the total number for BTR units under construction in Q1 2025 down to 1896, from 2545 the previous year.
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. In comparison, England saw a rise of six per cent between Q1 2024 and Q1 2025.
SPF says the Scottish BTR sector now faces the challenge 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”, says the SPF.
David Melhuish, director of the 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 three years in the future of Scotland’s BTR 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,” he added.
Highlights:
• Build-To-Rent construction in Scotland was down 26 per cent y-o-y in Q1 2025
• The number of units under construction in Q1 was 1896, down from 2545
• The Scottish Property Federation says the lack of growth is the consequence of the ongoing rent control proposals and reflective of the diminished confidence of investors
