‘Firmly back on radar’ - why Edinburgh and Glasgow are set for 8,000 new homes

Edinburgh and Glasgow are said to be “firmly back on investors’ radars” thanks to further clarity surrounding build-to-rent (BTR) exemptions within the Housing (Scotland) Bill’s secondary legislation.

Rent cap exemptions for BTR and mid-market rent properties were confirmed in September, following a three-year investment drought during which no new BTR funding was committed north of the Border.

Scotland also benefits from different building safety legislation, avoiding delays caused by England’s “gateway” approval process for high-rise buildings in the wake of the Grenfell Tower tragedy.

Releasing its Big Six Residential Development Report, property consultancy JLL said this regulatory advantage was attracting renewed interest from investors and contractors seeking to expand their presence in Scotland.

The firm noted that Edinburgh currently has 4,700 build-to-rent homes consented or in development - 76 per cent of its total market and the highest pipeline ratio in the “big six” UK cities examined in the report.

Notable activity in the Scottish capital has included the successful launch of Dockside in Leith and New Fountainbridge by Vastint, which delivered more than 600 new rental homes. Demand for studio and one-bedroom accommodation remains very strong, JLL added, with new build apartment prices rising 4.4 per cent and one-bedroom values up 6.7 per cent, “demonstrating robust underlying demand”.

With an estimated 4,400 homes consented or under construction, Glasgow currently has the second highest pipeline ratio in the big six, at 67 per cent. Key deals in the city have included North American investor Hines acquiring its first Scottish asset - the 324-home Solasta Riverside for £80 million - signalling renewed confidence in the market.

JLL said the Scottish market’s resurgence helped the UK’s six largest regional cities capture a record 46 per cent of all “multi-family” BTR investment in 2025. Some £1.1 billion of investment flowed into schemes across Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester last year - representing a 21 per cent increase on 2024.

Makela Milne, director of residential capital markets at JLL in Scotland, said: “Edinburgh and Glasgow are firmly back on investors’ radars as a BTR proposition, and the momentum is building. We’re now seeing active interest from institutions ready to deploy capital at scale.

“The fundamentals were always strong; supply has been curtailed, and occupier demand is robust. Further regulatory clarity is unlocking significant pent-up appetite, and Scotland is well positioned to capitalise on that confidence.”

Karl Tomusk, associate, UK living and residential research at JLL, said: “Regional BTR has reached an inflection point. While high debt costs and regulatory changes burdened the market through 2025, those headwinds are easing with interest rate cuts and greater clarity on building safety regulations.

“The Big Six captured a record share of investment because fundamentals remain strong. Their pipeline grew 16 per cent while the UK’s fell 7 per cent, and all six cities are forecast to outperform UK-wide house price growth.”

Scotland’s property market sees ‘bit more stability’ but there’s an east/west divide in one key sector