The BTR Sector In Scotland, Could This Be The Answer To The Housing Crisis?

Many large international investment firms have been increasing their level of activity and commitment to the UK’s BTR sector over the last 12 months.

Home ownership has become increasingly unaffordable in recent years and with a lack of high quality private rental housing available on the market, there has been a gap for The BTR sector which offers investors strong returns compared with other, more volatile sectors.

The BTR sector is also likely to deliver tangible benefits for consumers and make renting a more attractive long-term option as in many parts of Europe and the United States.

Scotland’s house prices have risen by more than 20% between March 2020 and December 2021, so home ownership may not be an option for many now. This means that renting remains a very real and likely option for many. The growth in BTR investment is set to increase in Scotland and across the UK and this is due to the location and quality of accommodation, the proximity to local amenities and in many cases the on site services which can include gyms, laundry services, car parking and concierge.

The focus on location and quality accommodation, helps to ensure high occupancy levels, making it an attractive investment proposition whilst offering strong financial returns for institutional investors.

Whilst this does not necessarily help people onto the property ladder and to fulfil their dream of home ownership, it does have real potential to improve both the quality and quantity of housing stock available in the private sector.

The BTR sector will create higher quality accommodation, a much more professional approach to property management, more certainty for both tenants and landlords, and the regeneration of many communities whilst driving more people back into town and city locations.