UK: The Scottish Property Federation (SPF) is calling for a blanket exemption of build-to-rent (BTR) homes from rent controls after research reveals a serious drop in the number of units under construction.
The SPF and Savills reported a 15 per cent year-on-year drop in the number of units being built in Q2 2025. The number of BTR units under construction in Scotland fell to 2,101 from 2,472 homes in the corresponding period. This follows a 26 per cent drop in Q1 2025.
In a submission to the consultation on the Housing (Scotland) Bill, the SPF and Savills say the data “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. 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,” they said.
The SPF is now calling for the BTR sector to be issued with blanket exemption from rent controls.
SPF director David Melhuish 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.”
Highlights:
• The Scottish Property Federation is calling for BTR to be exempt from rent controls after a drop in the number of units under construction
• The number of BTR units under construction in Scotland fell to 2,101 from 2,472 homes in the corresponding period. This follows a 26 per cent drop in Q1 2025
• In a submission to the consultation on the Housing (Scotland) Bill, the SPF and Savills say the data “further highlights the damaging impact potential proposals around rent controls have had on investor sentiment”
