Build-to-rent boost as £10m project set to come on market

● First significant project in city centre ● Growing signs of sector gathering pace

Homes in Glasgow’s first significant city centre buildto-rent(btr)developmentare set to go on the market in a further sign the sector is starting to gain traction in Scotland.

Tay Letting has been appointed to market Kelvin Properties’ £10 million Candleriggs Court development in the Merchant City to potential tenants.

Imminent completion of the 36-apartment development comes amid growing signs that the BTR sector, designed solely for renting to tenants rather than sale, is finally showing signs of coming of age in Scotland.

The BTR market in London and the south-east of England has seen dramatic growth in recent years and although a report from consultancy Rettie recently highlighted growth in the pipeline of schemes, Scotland still significantly lags the rest of the UK.

Stuart Patrick, chief execuaccording tive of Glasgow Chamber of Commerce, said: “It’s encouraging to see a continued pipeline of investment into Glasgow’s BTR market, a significant focus for the city’s overall strategic development.

“The creation of quality housing in prime locations supports round-the-clock city centre footfall while helping to retain a competitive edge when attracting skilled workers.”

Stephen Mckechnie, managing director of Kelvin Properties, which has delivered a number of other housing projects in Scotland, said: “Glasgow is a dynamic and thriving city that needs more residential development to help it to flourish. We are excited to be delivering one of Merchant City’s first BTR development and contributing to the wider regeneration of the city core.”

Over the last ten years, Glasgow has seen particularly low levels of residential development compared with other major cities, and house prices in Scotland are forecasted to rise 17 per cent by 2022, to research from Savills, making it more difficult for individuals to buy.

Rettie estimates there are now about 6,400 BTR homes completed or in the pipeline in Scotland, although the figure represents only 1.7 per cent of the 360,000 households in the private rental sector (PRS) in Scotland.

It also compares to the 4.9 per cent of BTR households in the UK’S PRS, and the almost 8 per cent of BTR homes that make up London’s PRS.

Hazel Sharp Webb, Rettie’s BTR business development director, said: “If BTR in Scotland is going to contribute materially to the housing shortage, then there has to be much more effective collaboration across the public and private sectors.

“To put this in context, if BTR in Scotland provided the same level of stock as down south then the Scottish pipeline would be nearer 12,000 homes, or at London rates, over 28,000 homes.”

Webb said there is much untapped capacity which needs to be unlocked if the sector’s potential to meet housing demands can be fulfilled.