A MAJOR housing plan in Glasgow is being put on hold, with Scottish Government rent controls cited as a reason.

The huge regeneration project involved 1500 flats on long-time vacant land in the city.

Get Living has permission for the flats, including more than 800 for rent and almost 700 for students, on the old college goods yard behind High Street.

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It is the biggest build-to-rent plan in the city and would make use of land that has lain unused for more than 20 years.

Glasgow Times:

The plan, which involved £200 million of investment, was hoped to help kick start a regeneration of the area to the east of Merchant City bringing in new residents and creating jobs.

Planning permission was granted by the city council just last month but now the firm has put it on the back burner.

The firm has said it cannot go ahead because of the Scottish Government’s rent control policy and market conditions.

It said rent control policy has led to a change in investor support and wants the Government to reconsider its plans.

Last year, the Glasgow Times ran a Spotlight investigation series looking at the build-to-rent model and who was behind the many developments taking place in the city.

The Get Living proposal was the biggest and had the backing of major international investors.

Get Living is a partnership between Qatari Diar, which is wholly owned by the Qatar Investment Authority, APG and DOOR SLP, an investment vehicle for several investors.

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A spokesperson at Get Living said: “At Get Living, we are big advocates of Glasgow as a thriving commercial hub and we know that the high-quality rental homes that are crucial to driving wider growth and productivity in the region are in great demand.

“This is what led us to our plans to create 1500 homes on the former College Goods Yard site, of which 823 homes would be for rent, alongside 687 studios for students.

“However, the ongoing policy on rent controls in Scotland combined with current market challenges has resulted in a shift in investor support, meaning that the viability of this development is now uncertain.

“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.”

A Scottish Government spokesperson said: “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.

“Initial rents for newly built rented homes are set by the market so are not affected by the rent cap. 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.

“Safeguards are built in for landlords, and we are allowing modest rises in rents from April onwards.

“We are also suspending the rent cap for student accommodation from March 30, recognising its limited impact on annual rents set on the basis of an academic year.

“Across Europe, it’s clear that better regulation of rented housing can go hand in hand with investment in more and better homes.

“Here in Scotland, our track record of investing in affordable housing has been underpinned by our partners’ investment, delivering 115,558 affordable homes since 2007, ahead of any other part of the UK.”