Scottish property leaders are calling for a blanket exemption of build to rent homes from rent controls following further evidence of a slide in the number under construction.
The Scottish Property Federation (SPF) and Savills reported a 15% drop the number of units being built in the second quarter of 2025 compared with the same period last year.
This means the total number of BtR units under construction fell to 2,101 from 2,472 homes in the corresponding period.
The Scottish government has stated that it is encouraging investment in the sector, but the data suggests that on the current trajectory the pipeline of new developments will dry up.
In a submission to the consultation on the Housing (Scotland) Bill, the SPF and Savills say the data “further highlights the damaging impact potential proposals around rent controls have had on investor sentiment.
“This can be evidenced by the fact that 11,103 BtR homes in Scotland remain stuck in planning and are not being translated into new construction activity.
“While the slight change in tone from the Scottish Government is welcome, 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 is now calling for the Build to Rent sector to be issued with blanket exemption from rent controls.
SPF director David Melhuish 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.”
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