4 days ago
- Business
- The Herald Scotland
Number of new homes being built in key sector ‘in decline'
The latest analysis from the Scottish Property Federation (SPF) and Savills has shown a continued decline in the number of units under construction in the second quarter of this year 2025 when compared to the same period last year.
This takes the total number for build-to-rent homes under construction down to 2,101 from the prior year's figure of 2,472 homes.
However, there was a 16 per cent increase of new developments being finished in the second quarter of 2025 compared to 2024.
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The SPF said that 'while this is a welcome increase, this further highlights the real challenge the Scottish sector continues to face is one of pipeline exhaustion'.
The SPF in its submission to the Housing (Scotland) Bill consultation on how powers within the Bill could be used to exempt certain types of properties from rent control, is urging that the built-to-rent sector be issued with blanket exemption.
David Melhuish, director of the Scottish Property Federation, 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."
Barbara Welsh, chair of Living Rent, the tenants' union said that "building expensive build-to-rent properties will not solve the housing crisis", adding: "These properties are completely beyond the reach of most tenants.
"Building more build-to-rent properties will do nothing for tenants unable to pay their rent, the thousands stuck in temporary accommodation or those left waiting on social housing waiting lists.
"Build-to-rent developers are not struggling. As they point out, there has been a boom in build-to-rent in recent years and the Housing Bill already allows for landlords to make above inflation profits year on year."
