Build-to-rent ‘critical’ to meet housing targets
Investors should be encouraged to support the build-to-rent sector by creating a positive regulatory regime, according to a trade body.
The Scottish Government is conducting a wide-ranging review of the residential property rental market in Scotland, which will consider tenants’ rights and the introduction of national rent controls.
Industry leaders say newly-published figures build-to-rent plans and completions show that Scotland is on course to close the gap on the rest of the UK and that it proves the importance of the sector in the housing mix.
Analysis by the British Property Federation, in partnership with Savills, showed that the number of build-to-rent units under construction in Scotland rose by 156% in the final three months of 2021 compared to the same quarter in 2020.
There were also more homes added to the build-to-rent pipeline, with a 4% increase in units in the planning system over the year.
Kevin Robertson, chairman of the Scottish Property Federation, said the figures are good news for Scotland and indicate that the build-to-rent market north of the border is starting to gain momentum.
“We can’t be complacent though. It is vital that the regulatory system in Scotland supports the continued expansion of build-to-rent and can give institutional investors the confidence and certainty they need to bring new developments forward.
“We’re clear that build-to-rent has a critical role to play in helping to solve Scotland’s housing crisis and will play an increasingly important part in enhancing quality and choice in the private residential sector.
“Many investors are increasing the amount they are allocating to build-to-rent developments and it would be good to see more of this capital being attracted to and invested in much needed new sustainable homes in Scotland.