UK: BTR operator Get Living has put a £200 million BTR and PBSA development on hold, citing Scottish Government rent control policy and market conditions.
The Glasgow project, which will include 800 BTR units and 700 student rooms, has already been delayed, after it secured planning permission for an updated proposal last month due to changes deemed necessary due to the pandemic.
A Get Living spokesperson said: “At Get Living, we are big advocates of Glasgow as a thriving commercial hub and we know that the high-quality rental homes that are crucial to driving wider growth and productivity in the region are in great demand. This is what led us to our plans to create 1500 homes on the former College Goods Yard site, of which 823 homes would be for rent, alongside 687 studios for students.
“However, the ongoing policy on rent controls in Scotland combined with current market challenges has resulted in a shift in investor support, meaning that the viability of this development is now uncertain. Whilst it remains our ambition to be part of the solution to the city’s housing shortage, at present we are unable to proceed with the scheme against this background and we hope that the Scottish Government will reconsider its stance.”
A Scottish Government spokesperson said: “We are in the midst of a cost of living crisis, and our emergency legislation has been protecting tenants from significant rent rises and risk of eviction. Initial rents for newly built rented homes are set by the market so are not affected by the rent cap. The measures can only be in place for a total of 18 months, if the circumstances demand it and with Parliamentary approval, and we are committed to ensuring that it remains proportionate and necessary.
“Safeguards are built in for landlords, and we are allowing modest rises in rents from April onwards. We are also suspending the rent cap for student accommodation from March 30, recognising its limited impact on annual rents set on the basis of an academic year. Across Europe, it’s clear that better regulation of rented housing can go hand in hand with investment in more and better homes. Here in Scotland, our track record of investing in affordable housing has been underpinned by our partners’ investment, delivering 115,558 affordable homes since 2007, ahead of any other part of the UK,” they added.
