When it comes to solving Scotland’s housing emergency, there isn’t a silver bullet; no one-size-fits-all solution. We must accelerate the delivery of all types of homes and think of tenures not as distinct silos but as a spectrum of choice and affordability.
When that spectrum has gaps, households lose options and the entire system comes under greater strain.
High-quality private rental homes, across both multi-family developments and single-family homes, are an essential part of meeting Scotland’s housing need and creating thriving places, but the market has seen stagnated growth.
The build-to-rent market is an established route to attract private capital at scale. Investors in good quality, professionally-managed homes need high tenant satisfaction, low voids, and stable long-term occupancy to generate reliable returns.
What is good for the tenant is good for the investor. That alignment is the foundation on which a healthy rental market can be built and reflects the kind of rental projects the Scottish National Investment Bank is looking to support.
The economic case extends well beyond building more homes. The private rental sector supports workforce mobility, enabling people to live close to jobs, move quickly for new opportunities, and put down roots regardless of their situation.
What is good for the tenant is good for the investor. That alignment is the foundation of a healthy rental market
- Susan Campbell
Build to rent can also play an important part in accelerating and unlocking development sites.
When institutional investors or landlords purchase on a bulk scale, they act as anchor customers on mixed-tenure development sites, giving developers the certainty and security to build out more quickly.
This creation of a mixed tenure housing pipeline, at pace and scale, supports investment in the supply chain and helps stimulate growth, competition and innovation.
In a world of constrained public finances, the Bank’s priority is using our public commercial capital to crowd in private investment at scale. One of our recent investments helps illustrate this.
In November 2025, we made a £50m investment in Octopus Capital’s affordable housing fund.
In a first for the fund and for Scotland, the investment is introducing an intermediate rent tenure to Scotland where both rent and energy costs will be discounted by around 20 per cent compared to market renting.
The fund invests in developing homes all over the UK, but our £50m will all be invested in Scotland and has ensured that at least a further £50m from the fund will also be invested here.
We have a growing pipeline of opportunities and are regularly speaking with investors who see the opportunity to help Scotland combat the housing crisis.
Again, there is no single solution, but accelerating our private rental sector is an important piece of the puzzle we are working to solve.
Susan Campbell is director of market creation for place, Scottish National Investment Bank
Partner Content in association with Scottish National Investment Bank