The Scottish Government has moved to exempt build-to-rent (BTR) and mid-market rent (MMR) homes from rent controls, marking a significant boost for housing investment in Scotland.
The secondary legislation, laid under the Housing (Scotland) Act, follows amendments to the Housing (Scotland) Bill, which was enacted last November.
The regulations, pending parliamentary approval, will come into force on 1 April. They aim to incentivise the delivery of high-quality, professionally managed rental homes, offering long-term, stable accommodation and supporting the growth of the BTR and MMR sectors.
Officials hope this will encourage diversification of the rental market, including single-family rental housing, which has expanded in other parts of the UK in recent years.
The move comes after a period of uncertainty following the September 2022 rent freeze, which put approximately 17,000 new homes and £3bn of investment at risk. The government’s decision seeks to rebuild investor confidence and enable the development of much-needed new housing.
David Melhuish, director at the Scottish Property Federation, said, “This is a critical signal to the real estate sector and wider investor community that Scotland is once again open for build-to-rent and mid-market rent investment. There is a clear and growing need for large-scale, high-quality, professionally managed, energy-efficient new rental homes.
“After several years of uncertainty, we believe these Regulations now provide a genuine platform for major investment in this residential sector. With the right support, build-to-rent and mid-market rent have the potential to deliver new homes at both scale and pace across Scotland.
“We not only urge all parties in the Scottish Parliament to recognise the importance of this opportunity and support these Regulations to unlock new investment and accelerate the delivery of much-needed rental homes but also continue to foster a positive investment climate as we head into the May elections and beyond.”
