Scotland is looking to attract greater levels of private investment into housing development, with Build to Rent identified as an important part of plans to accelerate the delivery of new homes across the country.
The Scottish Government’s Programme for Government 2026–31 sets out plans for a new national housing agency, More Homes Scotland (MHS), which will bring together funding, expertise and delivery tools in an effort to remove barriers and get more housing projects moving. The agency is expected to be phased in from 1 April 2027.
Central to the approach will be a strategic partnership between More Homes Scotland and the Scottish National Investment Bank (SNIB), designed to leverage additional private commercial capital for residential development.
The partnership will look across different housing tenures, with Build to Rent specifically identified alongside affordable and social housing as an area capable of supporting increased delivery. The Government also wants the initiative to encourage new entrants into the market and support the growth of existing housing providers.
For Scotland’s BTR sector, the announcement provides a potentially important new route for attracting institutional and private capital into projects at a time when the industry continues to face challenges around development viability, funding and the delivery of new housing at scale.
More Homes Scotland will have a wider role in coordinating housing delivery and investment, strengthening regional collaboration and helping to align new development with economic growth priorities.
The Government is also proposing further changes to the planning system aimed at speeding up development and helping projects progress from planning through to construction. The measures form part of a broader strategy to increase housing supply and improve investor confidence across Scotland.
Alongside the increased focus on private capital, affordable housing remains a major part of Scotland’s housing programme. The Government has committed to delivering 111,000 affordable homes by 2032, with at least 70% intended for social rent.
The establishment of MHS could therefore create a stronger link between public-sector housing priorities and institutional investment, opening opportunities for developers, investors, contractors and the wider construction supply chain.
For Build to Rent in particular, the commitment is significant because it places the sector directly within the Government’s plans for increasing housing delivery rather than treating it solely as a specialist investment market.
As More Homes Scotland begins to take shape ahead of its planned introduction from April 2027, attention will now turn to how its partnership with SNIB will translate private capital into viable development opportunities and, ultimately, new homes on the ground.
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