There is a pipeline of 7,200 homes on the way in the Build to Rent sector in Scotland – up by a third on last year, according to a new report.
Figures from estate agent Rettie suggest 4000 of the homes are in Glasgow, around 2000 in Edinburgh and 1000 in Aberdeen.
Build to Rent involves institutional investors such as real estate investment trusts and pension funds developing new properties to be be rented out for a regular return of income.
It is a growing trend but in Scotland represents less than 2% of the private rented sector, compared with 3% across the UK and 9% in London.
Some projects are partnerships between the public and private sectors. City of Edinburgh Council and the Scottish Government’s Scottish Futures Trust part funded Forth Ports and Rettie’s Harbour Gateway at Western Harbour in Leith.
Gillian McLees, head of BTR at Rettie & Co, said: “BTR is well up against last year, with Glasgow in par-ticular being a shining example of how public-private partnerships can operate effectively to address the continuing and chronic undersupply of housing.
“This shows that local authorities can work effectively with institutional investors to provide a new housing tenure and meet housing need in Scottish cities, as they have done down south in the likes of London and Manchester.”
John Boyle, Rettie & Co’s director of research and strategy, added: It’s notable that, in addition to providing new homes, the BTR sector is now producing signif-icant economic impact, with the value of construction contracts in Glasgow alone at around half a billion pounds.”
In June 2018, Rettie & Co was appointed by PfP Capital, a subsidiary of regeneration group Places for People (PfP), to support the delivery of 1,000 affordable homes across Scotland following a long-term loan of £47.5 million from the Scottish Government.