SCOTLAND’S build-to-rent (BTR) sector is tipped for a comeback following a period of uncertainty that resulted in stalled development activity.
New legislation exempting BTR from rent control measures has the potential to unlock nearly 10,000 homes and trigger a wave of renewed investment, according to property consultancy Ryden.
The findings form part of Lambert Smith Hampton’s (LSH) ‘Live & Kicking’ Build to Rent Report 2026. There are currently no large-scale BTR schemes under construction anywhere in Scotland, despite a significant pipeline of approved developments. This highlights the scale of the slowdown since 2022.
Development activity was impacted by the introduction of emergency rent controls during the cost-of-living crisis, which led to a drop in investor confidence and delayed new projects. However, the introduction of new regulations exempting BTR developments from rent controls has provided clarity, prompting a ‘significant shift in sentiment’ across the sector.
The Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026, which came into force in April, confirm that qualifying BTR schemes will not be subject to rent control measures. As a result, developers and investors are now returning to the market, with activity expected to focus initially on Glasgow and Edinburgh.
Ryden, part of the LSH Group, led the Scotland-focused analysis within the report. David Fraser, partner in residential investment & development, Ryden, said, “The market effectively ground to a halt after 2022, but we’re now seeing a clear turning point. The introduction of rent control exemptions has restored the certainty investors need to commit to new projects.
“Scotland has moved from one of the most uncertain BTR markets in the UK to one of the most compelling investment opportunities. With a substantial consented pipeline of nearly 10,000 units already in place, the opportunity now is to unlock delivery and help address the country’s housing shortfall.”
Industry experts point to significant untapped potential, with Scotland’s major cities lagging behind English counterparts in terms of BTR provision, despite strong population growth and a high proportion of young renters.
There has also been an increase in interest in the development of co-living and single-family rental (SFR) products in Scotland.
Ryden believes Scotland is entering a new phase for build-to-rent growth, with long-delayed developments now expected to move forward.
