Build-to-Rent in the Private Rented Sector in Scotland
Scotland is a country with urgent yet diverse housing needs. Major demographic shifts over the last decade have highlighted a changing housing landscape and the need to consider alternative models of funding and development. Increasing the capacity of Scotland's growing rented sector has a major role to play in achieving a balanced and sustainable tenure mix. It also offers new and significant opportunities to attract investment and achieve the rapid, volume delivery of purpose-built, professionally-managed, high quality housing - boosting flexibility, choice and affordability in doing so.
Our “Building the Private Rented Sector” project was therefore initiated in order to help determine how new sources of funding can be attracted to help expand the Scottish rental market. With support from the Scottish Government and a Working Party of experts from industry, trade associations, managing agents, financiers and local authorities, Homes for Scotland worked collaboratively to take forward the recommendations of the 2013 BRS Report and identify a cohesive set of positive interventions to facilitate the Build to Rent sector’s growth.
This culminated in publication of an “Opportunity Document” in October 2017 which sets out the policy levers the Scottish Government has put in place to help achieve this. These include the Rental Income Guarantee Scheme (RIGS) which aims to provide investors with greater confidence during the early stages of development, when letting risk is likely to be highest.
Promotion of the Opportunity Document and management of RIGS is now being undertaken by the Scottish Futures Trust.
Background on the project can be found below.