Latest analysis from Real Estate:Scotland and Savills revealed that a total of 1,466 BTR homes were under construction in Scotland in Q2 2026, down from 1,995 during the same quarter last year.

This represents the sharpest percentage fall of any UK nation. The number of BTR homes under construction fell by 21% in England and 9% in Wales, while Northern Ireland recorded no change.

The decline comes despite recent measures intended to encourage residential investment in Scotland, including the confirmation that qualifying BTR properties will be exempt from rent-control restrictions. There was a modest improvement further back in the development pipeline, with the number of BTR homes in planning increasing by 3% compared with the same period last year.

However, the continued fall in homes under construction suggests that too few proposed developments are progressing from planning into delivery. It also points to particularly acute challenges in making new BTR schemes financially viable in Scotland.

Real Estate:Scotland is calling on the Scottish Government to put development viability at the heart of its Programme for Government in September. It is also urging ministers to assess carefully how new policy proposals could affect housing delivery and investment.

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.”