Scottish BTR Sector Saw Strong Growth in 2021
Analysis published by the British Property Federation (BPF) has shown that the number of build-to-rent homes completed, under construction or in planning across Scotland rose by 19% in 2021 to 12,793.
The research, which was undertaken in partnership with Savills, highlighted that the number of build-to-rent units under construction in Scotland more than doubled in Q4 2021 compared to the same quarter in 2020, from 993 to 2,547 (a 156% increase). 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, bringing the total number to 9,249.
It is hoped that the number of homes under construction and in planning will help Scotland to begin to close the gap with the number of build-to-rent homes completed elsewhere in the UK. In Q4 2021, Scotland had a total of 997 completions, accounting for just 1.4% of all completed build-to-rent homes in the UK.
The analysis comes as 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 with a form of local flexibility.
Kevin Robertson, chair of the Scottish Property Federation, commented: “Today’s figures are good news for Scotland and show that the build-to-rent market north of the border is really 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.”
He added: “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.”