Aberdeen, Edinburgh and Glasgow are in the top UK towns and cities – outside of London – where Build to Rent developments could grow – due to increasing demand for private rental homes over the next ten years.
Glasgow and Edinburgh will remain within the top five largest rental sectors in the UK, due to high projected rates of employment and economic growth. Glasgow’s rental sector is expected to increase by 70,000 households and Edinburgh to 60,000 – so more homes are needed to meet demand. In Aberdeen, the rental sector is expected to grow by 5,000 households – leading to almost 30,000 households renting by 2028.
“It’s no surprise that Edinburgh, Glasgow and Aberdeen are included on the list of UK cities where strongest demand for private rented accommodation is anticipated over the next ten years.
“All three have high numbers of students and 25 to 34-year-olds, two of the three main factors that influence greater requirement for rental accommodation. This source of talent and custom attracts employers and businesses to the cities, helping to drive a relatively high-performing economy – the third factor in strong rental demand.”Steven Newlands, Head of Investment, CBRE Scotland
According to the Office of National statistics, in the past decade, the number of homeowners has declined, but we’ve seen an increase in households that are renting privately – from 13% to 20%. There’s an increasing demand for Build to Rent homes and we’re seeing more investment in the market.
Over the past five years, CBRE have tracked over £10bn of investment in the UK. In Scotland, Legal and General have forward-funded two significant Build to Rent schemes. Their first Build to Rent scheme in Scotland – a 324 apartment development at Buchanan Wharf in Glasgow, and the Skyliner development – a 338 home scheme at Leith Docks in Edinburgh.
Feature image credit: Legal & General