The Herald - The Herald Magazine
THE VOICE OF PROPERTY
IT has been a week of good news and potentially not so good news for the rental market in Scotland.
First, the welcome announcement of a new, stateof-the-art build to rent (BtR) neighbourhood in the Springboig area of Glasgow by rental home operator Casa by Moda.
The new £41m neighbourhood, named Casa, Vista Park, will offer residents deposit-free, pet-friendly living as part of an inclusive offer designed to prioritise health, wellbeing and sustainability. More important, it marks the first time a single family rental model – based on Moda Family Homes – has been offered in Glasgow.
The site, originally purchased by CCG Group as a private residential development for its private housing subsidiary CCG Homes, will now comprise a mix of one and twobedroomed apartments alongside two, three and four-bedroomed houses for rent in a collaboration with CCG.
Casa, Vista Park will also have community spaces including a wildlife area and children’s play parks. And residents will benefit from several Casa brand partnerships, including Utopi’s market-leading tech platform.
In a first for the industry, smart technology will be installed in every home to monitor air quality, energy usage and carbon emissions – while also being able to pre-empt maintenance issues and provide live data reporting via their MyCasa resident app.
This bespoke app also enables residents to pay rent, take advantage of local, regional, and national brand partnerships, and provides the option to book at-home services, such as dog walking, window cleaning and gardening services..
NOT so good perhaps, a report released this week by The Scottish Property Federation in association with researchers Rettie & Co, reveals rent controls and political uncertainty are affecting investor appetite to fund and deliver BtR homes in Scotland.
The Assessment of Scotland’s Rent Freeze and Impact Report shows the system of rent control introduced under the Cost of
Living (Tenant Protection) Act will disrupt the future supply of new homes for rent. 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 twothirds (67 per cent) are in planning including 6,000 properties with planning permission where construction is yet to begin on site.
David Melhuish, director, Scottish Property Federation, comments: “The impact of the emergency legislation on the BtR market over the last six months is clear. The lack of long-term policy certainty means investors largely view Scotland as a risk, compared with more stable locations in other parts of the UK.”