Scotland’s build-to-rent sector suffers sharpest decline across UK

The number of build-to-rent (BtR) homes under construction in Scotland has fallen sharply, recording the largest decline of any UK nation.

Figures from Real Estate: Scotland and Savills show that 1,466 BtR homes were under construction in Scotland in Q2 2026, down from 1,995 in the same quarter last year.

This represents a 27% year-on-year fall, the largest decline recorded across the UK. The number of BtR homes under construction fell by 21% in England and 9% in Wales, while Northern Ireland recorded no change.

Viability pressures affecting housing developments

Anamika Dwivedi, senior policy officer at Real Estate: Scotland, said: “The 27% fall in the number of Build-To-Rent homes under construction is further evidence that the viability pressures affecting housing development are becoming more severe.

“Although the modest increase in the number of homes in planning provides some grounds for longer-term optimism, significant headwinds remain. Construction costs, delivery capacity, regulatory requirements and subdued investor sentiment are all making it harder for schemes to progress.

“It is therefore imperative that the Scottish government puts viability at the heart of its upcoming Programme for government and carefully considers the effect of any new policy proposals on investment and the delivery of new homes across Scotland.”

Rent control exemption

The Scottish government has previously said that qualifying BTR properties will be exempt from rent controls.

As previously reported by Property118, this has raised concerns over the potential creation of “a two-tier rental market”.

Last year, a Scottish government consultation said: “With specific refence to the possible exemptions for MMR or BtR properties, there were also private landlord, letting agent or their representative bodies and individual respondents who argued that granting an exemption for (predominantly) large professional landlords operating in one part of the private rented sector will create a two-tier system that unfairly disadvantages the (often) small private landlords whose properties would be subject to rent controls.”