Scotland could exempt BTR and mid-market rent from rent caps
12:00 AM, 3rd February 2026, 3 months ago
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The Scottish government has laid secondary legislation to exempt build-to-rent and mid-market rent homes from private rented sector rent controls.
The move is aimed at unlocking stalled investment and accelerating new housing delivery.
The regulations, introduced under the Housing (Scotland) Act, follow almost two years of amendments to the original Bill, which was passed in November.
Changes were backed across parties at Holyrood as ministers sought to strike a balance between tenant protection and attracting fresh capital into new housing.
Scotland’s BTR investment
Scottish Property Federation’s director, David Melhuish, said: “This is a critical signal to the real estate sector and wider investor community that Scotland is once again open for build-to-rent and mid-market rent investment.
“There is a clear and growing need for large-scale, high-quality, professionally managed, energy-efficient new rental homes.”
He added: “After several years of uncertainty, we believe these regulations now provide a genuine platform for major investment in this residential sector.
“With the right support, build-to-rent and mid-market rent have the potential to deliver new homes at both scale and pace across Scotland.”
Move will restore confidence
If approved by Parliament, the measures will take effect from 1 April with Ministers saying the change could restore confidence among developers and investors.
The decision comes after the September 2022 rent freeze halted momentum in the sector, putting around 17,000 proposed homes and an estimated £3bn of investment on hold.
Industry figures say the exemption is intended to restart that pipeline and support professionally managed rental schemes, including a possible expansion of single-family rental housing that has grown rapidly elsewhere in the UK.
Boost housing standards
The government argues that BTR and mid-market homes can help increase supply.
Mid-market rent homes are typically let at below open-market levels and aimed at working households in Scotland who earn too much to qualify for social housing but cannot afford full private rents.
The move will also improve standards and provide longer-term stability for tenants.
Supporters of the change say the exemption is a necessary step to rebuild trust with long-term investors.
It’s also hoped that Scotland will compete with other parts of the UK for housing capital.
Parliamentary scrutiny will determine whether the new framework gains final approval.
Tags:
BTR investment Scotland, build to rent Scotland, mid-market rent, Scotland rent caps, Scottish Housing Policy
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Member Since July 2013 - Comments: 467 - Articles: 1
12:12 PM, 3rd February 2026, About 3 months ago
This government, just like the last one, seems to be hell bent on driving the uppity “kulaks”, (Mum and Dad landlords), out of the private rented sector and handing landlordism to their pals in big corporations who are more likely to do their bidding and be more easily controlled. (Unfortunately, the big corporations cannot make decentralised properties work for them and the rents they charge are always higher than private landlords charge , even on the same sort of identikit flats in similar big developments).
I have been saying this for years, as part of what they call a Great Reset, everything must be controlled by big corporations, you can only own shares in big corporations that let property, but you are to be discouraged via targeted regulations and taxes from holding property directly.
Member Since September 2018 - Comments: 3538 - Articles: 5
5:58 PM, 3rd February 2026, About 3 months ago
“There is a clear and growing need for large-scale, high-quality, professionally managed, energy-efficient new rental homes.”
Yep and it will cost. Look at the comparable rent rates now. Blocks are laying empty because there is a lack of tenants able to afford the rates.
Rents cannot be capped – corp investers are only market driven and when they go all in, they want to see quick turn arounds and returns.
Rents are already now at the level of the majority of tenants cannot afford and with the job situation where it is, businesses closing, redundancies imminent, employment laws about to kick in etc….there’s no chance this is going to get better anytime soon….