Developer pauses £200m Glasgow rental scheme over Scottish rent controls

According to Get Living, these policies had shifted investor support and made the viability of the project uncertain. 

A spokesperson said: “Whilst seemingly an attractive prescription for limiting rental levels, rent controls have unintended consequences that only serve to exacerbate the underlying problem. 

“By reducing investment in the rental market, such policies suffocate future supply, lower standards and risk creating an unregulated secondary market for sublets.”

However, a Scottish government spokesperson said that newly built rented homes are set by the market so are not affected by the rent cap.

They added: “We are in the midst of a cost of living crisis, and our emergency legislation has been protecting tenants from significant rent rises and risk of eviction. The measures can only be in place for a total of 18 months, if the circumstances demand it and with parliamentary approval, and we are committed to ensuring that it remains proportionate and necessary.”

First approved in 2018, the plans for the derelict goods yard site would have delivered 823 rental homes, alongside 687 studios for students.

An updated masterplan was then given consent earlier this year, with design changes to the scheme including more green space and lower buildings.

Get Living is one of the UK’s largest build-to-rent developers, operating more than 2,000 homes in London and best known for East Village, the former London 2012 Athletes’ Village.

The Get Living spokesperson added: “Whilst it remains our ambition to be part of the solution to the city’s housing shortage, at present we are unable to proceed with the scheme against this background and we hope that the Scottish government will reconsider its stance.”