Rettie & Co: Build to rent pipeline continues to accelerate in Scotland
The number of operating and pipeline build to rent (BTR) homes in Scotland has increased by 24% to reach nearly 9,000, according to Rettie & Co.
The latest BTR Briefing for Scotland has revealed that Glasgow continues to lead the way, with around 4,500 BTR homes, followed by Edinburgh (around 3,100 homes) and Aberdeen (around 1,100 homes).
Rettie & Co highlighted that there are still relatively few operating BTR homes, with much of the supply remaining potential. However, a number of large schemes have moved forward in planning and financing in the last year.
The total construction value of such schemes in Scotland is now over £1 billion.
Rettie & Co have said that the COVID-19 pandemic will have impacts on the sector. Rent levels in the Scottish private rented sector are expected to drop back and vacancy levels will rise for a time. However, the flexible nature of BTR product should enable the sector to maximise the opportunities as people consider their future live/work balance.
The briefing has also indicated that there has been growth in the Mid Market Rent sector in Scotland, with PfP Capital securing a pipeline of nearly 900 homes in the past year.
Dr John Boyle, Rettie & Co’s director of research & strategy, said: “As in the rest of the UK, the BTR sector has continued to grow in Scotland in the last year and, despite the pandemic, developer and investor commitment to the sector remains strong.
“Once fully up and running, BTR will become a major provider of housing in Scotland and generate significant economic impact. It is also encouraging to see affordable BTR homes being provided with more MMR schemes being funded by public and private capital.”