Rent controls and political uncertainty are affecting investor appetite to fund and deliver Build-to-Rent (BtR) homes in Scotland, according to a new report.

The Assessment of Scotland’s Rent Freeze and Impacts Report, released by The Scottish Property Federation in association with researchers Rettie & Co, shows that the system of rent control introduced under the Cost of Living (Tenant Protection) Act will disrupt the future supply of new homes for rent.

A series of in-depth interviews with institutional investors has shone a light on the impact of Scotland’s six-month rent freeze and recently introduced 3% rent cap on the Scottish BtR market.

Of the 14 investors interviewed with a combined £15 billion of BtR assets, nine judged Scotland to be unattractive, including four who view the country as un-investable under current conditions.

Scotland, which has been slower to attract BtR investment than other parts of the UK, had been experiencing strong BtR growth in both Glasgow and Edinburgh in recent years. The pipeline of BtR in Scotland sits at around 17,000, but two-thirds (67%) are in planning including 6,000 properties with planning permission where construction is yet to begin on site.