Investor Study Tour Ministerial Roundtable Executive Summary & Detailed Notes
Below are the executive summary and detailed notes from the Ministerial Roundtable, which was held during our successful Scotland Study Tour in Edinbugh and Glasgow on the 4th and 5th of February. More details on the Study Tour can be found here.
A review of the study tour is available here.听
The full PDF version of the Ministerial Roundtable document, can be downloaded here.
Investor Study Tour Ministerial Roundtable Executive Summary & Detailed Notes
Executive Summary听
This document provides a听consolidated听overview of the key themes, issues, commitments, and next steps discussed during the Build to Rent (BTR) Scotland Roundtable on 4 February 2026. Major themes include policy stability, investment confidence, the new More Homes Scotland agency, development viability, planning inconsistencies, supply chain challenges, and the rental sector鈥檚 role within the wider housing ecosystem.听
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Key insights:听
– Strong emphasis on the need for long-term policy stability following a period of volatility.听
– Exemptions from rent controls (effective 1 April) are seen as essential to rebuild investor confidence.听
– The More Homes Scotland national housing agency aims to听improve听听deliverability, aggregation, and听clarity for housing providers, with industry calling for acceleration.听
– Persistent issues such as planning inconsistencies, HMO licensing delays, and construction cost disparities听remain听barriers to investment.听
– Industry called for proactive government promotion of Scotland as an investable market.听
– Contractors highlighted the need for predictable pipelines to reduce costs and build local supply chain capacity.听
– The rental sector was positioned as a critical incubator supporting broader housing delivery.听
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Detailed Combined Notes听
- Purpose of the Meeting
– Part of a two-day Scotland BTR tour organised by ARL, aimed at showcasing Scotland as open for business and promoting development and investment opportunities in BTR and operational living.听
– Discussions听centred听on policy stability, investment climate, the new More Homes Scotland agency, and opportunities for collaboration between public and private sectors.听
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2. Sector Overview & Current Landscape听
– Scotland has 5,048 operational BTR/operational living homes and 8,253 homes in the pipeline.听
– Approximately 拢1.5bn invested to date, with 拢2.5bn in identifiable future opportunities.听
– Recent improvements听include:听exclusion of BTR/MMR from rent controls, a stable building standards environment, and closer collaboration between industry bodies (ARL, SPF) and Scottish Government.听
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3. Key Issues Discussed听
3.1 Policy Stability & Housing Act听
– Industry stressed the need for regulatory stability following听previous听uncertainty cycles (e.g., 2022 rent freeze).听
– Government reaffirmed long-term commitment to exemptions from rent controls and articulated a听determination to provide clarity,听certainty听and a clear path听for investors.听
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3.2 More Homes Scotland Agency听
–听Intended听听as听a delivery-focused national agency,听with some similarities and differences听in function to Homes England.听
– Core focus areas:听deliverability听support, scaling, remediation, procurement innovation,听standardised听playbooks.听
– Timeline: establishment 2027鈥�28; fully operational 2028鈥�29, though industry urged acceleration.听
– Government open to bringing delivery functions forward where possible.听
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3.3 Construction Costs, Market Capacity & Contractors听
– Construction costs in Glasgow/Edinburgh approx. 15% higher than Manchester.听
– Lack of pipeline consistency deters contractors and inflates prices.听
– Contractors (e.g., Torsion) see Scotland as an opportunity but require predictable deal flow and improved supply chain resilience.听
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3.4 Building Safety Levy (BSL)听
– Industry voiced concerns about disproportionately high levies for BTR and PBSA, with risks of major cash鈥�flow impacts.听
– Government acknowledged issues and听noted听commitment听to working with industry to consider sector听differentiation.听
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3.5 LBTT, Multi-Dwelling Relief (MDR) & ADS听
– MDR viewed as a key competitive advantage for Scotland.听
–听Government听confirmed no changes expected to MDR alignment.听
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3.6 Long-Term Letting Restrictions听
– Concerns raised over the phrase 鈥渆xclusive use for long-term residential letting鈥� in legislation, with risks to valuations and financing.听
– Government open to clarifying language听and听noted ongoing discussion with industry on this issue.听
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3.7 Planning, Local Authority Variability & HMO听
– Persistent inconsistencies between local authorities, including differing affordable housing requirements.听
– HMO licensing delays restrict the ability to rent 3-bed units to sharers.听
– Industry called for greater regional alignment.听
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3.8 Role of BTR in Housing Ecosystem听
– BTR positioned as crucial to fast delivery, responding to emerging needs (young professionals, sharers), and supporting regeneration.听
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4. Requests from Industry to Government听
–听Maintain听policy stability.听
– Promote Scotland to international investors.听
– Provide fiscal and viability support for challenging sites.听
– Accelerate More Homes Scotland鈥檚 enablement functions.听
– Address barriers: BSL, HMO licensing, planning inconsistencies.听
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5. Scottish Government Commitments听
– Exemptions from rent control remain on track for 1 April.听
–听Government听emphasised听willingness to engage in ongoing dialogue and explanation to clarify wording and intent of regulations.听
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6. Operational & Investment Challenges Raised听
– Past volatility affected investor confidence; rebuilding confidence seen as slow and fragile.听
– Calls for听clearer, more assertive investment promotion.听
– Contractors and operators highlighted high build costs, inconsistent planning, and lack of local supply chain development.听
– Need for听predictable听operational cost environment (e.g., council tax on voids).听
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7. Follow鈥�Up Actions听
– Clarify long鈥�term letting terminology.听
– Government to enhance investor promotion at major events.听
– Address Building Safety Levy design impacts.听
– Distribute updated schedules of consented schemes.听
–听Organise听political site tours to change听perceptions.听
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