The number of Build-to-Rent homes under construction in Scotland has fallen by 27% over the past year, the sharpest decline of any UK nation, according to new analysis from Real Estate:Scotland and Savills.
A total of 1,466 BTR homes were under construction in Scotland in Q2 2026, down from 1,995 in the same quarter last year. By comparison, BTR construction fell 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 confirmation that qualifying BTR properties will be exempt from rent-control restrictions. There was some improvement further back in the pipeline, with the number of BTR homes in planning rising 3% year on year.
However, the continued fall in homes under construction suggests too few proposed developments are progressing from planning into delivery, pointing to particularly acute challenges around financial viability.
"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," said Anamika Dwivedi, senior policy officer at Real Estate:Scotland.
"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."
Real Estate:Scotland is calling on the Scottish Government to place development viability at the centre of its Programme for Government in September. The organisation is also urging ministers to assess how new policy proposals could affect housing delivery and investment before they are brought forward.
