In a report about BTR, called ‘A New Dawn’, Bidwells has pointed to a recently added passage in Scotland’s Housing Bill which intends to introduce permanent rent regulation to the country.

This would ‘crucially’ include exemption for BTR and mid-market rent (MMR) sectors, according to Bidwells.

There are 8,253 BTR developments in Scotland, all of which have regulatory approval, but have stalled due to regulatory uncertainty.

“These 8,300 homes represent an immediate opportunity to capitalise on Scotland’s new pro Build to Rent environment,” commented the report.

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“All consented schemes are situated in Glasgow or Edinburgh, which each have strong market fundamentals.”

Highlighting the negative role regulation can have on development, Bidwells has calculated that Scotland’s BTR pipeline could be 21% higher today had the Tenant Protection Act not been introduced.

Instead of seeing a drop-off in planning application submissions in 2024, Scotland would have seen 18.3% year on year growth according to Bidwells, propelling it to a record high of 3,174 homes submitted.

Iain Murray, head of operational living at Bidwells, says Scotland’s BTR is in a better position to flourish than in England due to the latter’s regulatory environment.

“Against this backdrop, Scotland is actively pursuing a path of pragmatic, pro-investment exemptions designed to stimulate supply. England, conversely, is implementing a suite of broad, often overlapping regulations that are creating significant viability challenges, operational uncertainty, and additional costs for developers and operators,” said Iain.

“This legislative certainty has de-risked BTR investment, positioning Scotland as one of the UK’s most stable and predictable rental markets.”