Failing Build To Rent sector wants special treatment from government

Failing Build To Rent sector wants special treatment from government

The head of the Scottish Property Federation wants Build To Rent to get special treatment from that country’s government.

Latest analysis from the SPF and Savills has shown a continued decline in the delivery of BTR homes across Scotland. 

There’s been  a 15% drop the number of units under construction in Q2 2025 when compared to the same period last year. This takes the total number for BtR units under construction down to 2,101 from the prior year figure of 2,472 homes.

Now SPF director David Melhuish wants Build To Rent to be exempt from Scottish Government proposals for rent controls.

David Melhuish, the federation director, says:“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.”

SPF data reveals that the number of BTR completions significantly exceeded those under construction, with a 16% increase of new developments being finished in Q2 2025 compared to Q2 2024. The federation says that while this is a welcome increase, this further highlights the real challenge the Scottish BtR sector continues to face is one of pipeline exhaustion.

The federation goes on to say that 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.

The SPF – in its submission to the Housing (Scotland) Bill consultation – says powers within the Bill could be used to exempt certain types of properties from rent control, and it wants the Build to Rent sector be issued with blanket exemption.

This article is taken from Landlord Today