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UK: The number of build-to-rent BTR homes under construction in Scotland has fallen by 27 per cent over the past year, according to new analysis from Real Estate:Scotland and Savills.
The fall is the sharpest decline of any UK nation. A total of 1,466 BTR homes were under construction in Scotland in Q2 2026, down from 1,995 in the same quarter last year. By comparison, BTR construction fell 21 per cent in England and nine per cent in Wales, while Northern Ireland saw no change.
The decline comes despite recent measures intended to encourage residential investment in Scotland, including confirmation that qualifying BTR properties will be exempt from rent-control restrictions. The number of BTR homes in planning was up three per cent year-on-year.
Anamika Dwivedi, senior policy officer at Real Estate:Scotland, said: “The 27 per cent fall in the number of build-to-rent homes under construction is further evidence that the viability pressures affecting housing development are becoming more severe. Although the modest increase in the number of homes in planning provides some grounds for longer-term optimism, significant headwinds remain. Construction costs, delivery capacity, regulatory requirements and subdued investor sentiment are all making it harder for schemes to progress.”
“It is therefore imperative that the Scottish Government puts viability at the heart of its upcoming Programme for Government and carefully considers the effect of any new policy proposals on investment and the delivery of new homes across Scotland,” she added.
Real Estate:Scotland is calling on the Scottish Government to place development viability at the centre of its Programme for Government in September, and to assess how new policy proposals could affect housing delivery and investment before they are brought forward.
Highlights:
- The number of build-to-rent BTR homes under construction in Scotland has fallen by 27 per cent over the past year, according to new analysis from Real Estate:Scotland and Savills
- A total of 1,466 BTR homes were under construction in Scotland in Q2 2026, down from 1,995 in the same quarter last year
- The number of BTR homes in planning was up three per cent year-on-year.
- Real Estate:Scotland is calling on the Scottish Government to place development viability at the centre of its Programme for Government
