Over the next two decades, there is expected to be a demand for 465,000 new homes in Scotland. Yet new housing output has fallen to its lowest level since 1947, having slumped by over 40% in 2007.
The recent financial crisis has led to unexpected growth in the private rented sector: people are increasingly unable to enter the housing market or are delaying their plans to do so, while banks have become more reluctant to lend to real estate projects.
LSE London and the Cambridge Centre for Housing and Planning Research were commissioned by Homes of Scotland to investigate the barriers faced by developers in investing in this sector and to examine how to increase the supply of new homes within it. The report made twenty recommendations, particularly emphasising the overall need for increased cooperation and coordination, alongside a better understanding of the fast-moving market.
As a result of the findings, the Scottish Government has announced that it will appoint a private rented sector champion. They will lead an expert group with the aim of further identifying these challenges and will also work towards a greater involvement of financial institutions in the sector.
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Read the full report.|