Balancing policy, people and performance
Scotland’s housing system is entering a new phase of reform. The Housing (Scotland) Bill places greater emphasis on fairness, affordability and tenant protection, supporting the creation of stable, well-managed rental homes that serve a broader range of households.
Within this context, Build to Rent (BTR) has become an increasingly important part of housing delivery across Scotland. Purpose-built, professionally managed rental developments are helping to expand housing choice, regenerate urban areas and set new standards for design and management. However, for BTR to align with Scotland’s social and policy objectives, affordable housing must be meaningfully integrated from the outset.
The policy landscape
The Scottish Government and local authorities are promoting a stronger mix of tenures across new housing developments. This includes affordable models such as mid-market rent (MMR), discounted market rent, shared equity and Intermediate Market Rent (IMR).
The Housing Bill’s focus on rent regulation, landlord accountability and housing standards reinforces the need for early collaboration between developers, investors and local authorities. Affordable housing within BTR is no longer viewed as a planning obligation alone, but as a strategic tool to deliver social value, support local economies and achieve long-term occupancy and investment stability.
Case study: Intermediate Market Rent at Dockside, Leith
Goodstone Living’s Dockside development on Leith’s waterfront is one of Scotland’s most prominent examples of how affordable tenures can sit comfortably within a Build to Rent environment. Developed in partnership with the City of Edinburgh Council, the scheme delivers more than 400 modern, energy-efficient apartments across four residential buildings, combining market and affordable tenures under a single, cohesive management structure.
A portion of these homes are offered through the Intermediate Market Rent (IMR) model, providing high-quality, well-managed apartments at below-market rents for households on moderate incomes. IMR is designed to help working people who do not qualify for social housing but cannot easily access the private rented sector in high-cost areas.
At Dockside, the IMR homes are located within the same blocks as market-rent apartments, sharing the same entrances, design features, communal spaces and on-site amenities. This creates a truly tenure-blind environment that promotes integration and equality, while still delivering strong investment performance.
Eligibility criteria for IMR at Dockside
Applicants for IMR homes at Dockside must meet eligibility requirements set by the City of Edinburgh Council to ensure the homes reach the intended target group. These include:
- The total gross household income must not exceed £58,331 per year.
- Applicants must have the right to live and work in the UK.
- Applicants must not own or part-own another residential property (unless it can be clearly demonstrated why they cannot reside there, for example due to separation or overcrowding).
- The property must be the household’s only or principal home.
- Applicants must be able to demonstrate that the rent is affordable and sustainable based on their income.
These criteria are designed to prioritise key workers, local employees and households who contribute to the city’s economy but are increasingly priced out of the traditional private rental market.
Why Intermediate Market Rent matters
IMR represents a practical bridge between social housing and open-market renting. It delivers good-quality homes at more attainable rents, without ongoing public subsidy, while providing stable income for investors and management consistency for operators.
The model delivers several key advantages:
- Policy alignment – supports the objectives of the Housing (Scotland) Bill by providing fair rents, security and quality housing.
- Affordability that works – rents are set below market levels but remain viable for institutional investors.
- Community balance – promotes mixed-income neighbourhoods, reducing segregation by tenure.
- Tenant stability – offers predictable rents and professional management, reducing churn and building long-term communities.
Dockside shows how this model can be implemented at scale. The IMR homes are integrated seamlessly within a modern BTR environment, achieving both social impact and commercial sustainability.
How Highlight supports delivery
Highlight Housing works with developers, investors and managing agents to deliver integrated, mixed-tenure BTR developments that align with Scotland’s housing priorities. Our role bridges commercial objectives with compliance and social purpose, ensuring that affordable homes strengthen rather than compromise the overall investment model.
Our services include:
- Affordable housing strategy and alignment – supporting negotiations, tenure strategy and local authority engagement.
- Partner introductions – connecting developers with registered social landlords, funders and local delivery partners.
- Viability and rent modelling – ensuring affordable homes complement financial performance and ESG goals.
- Operational structure and management design – creating tenure-blind frameworks that maintain a consistent resident experience.
- Sales and lettings delivery – managing and marketing affordable tenures with the same professionalism and transparency as market units.
Building long-term value for Scotland
As the Housing (Scotland) Bill progresses, the ability to integrate affordable tenures like IMR within Build to Rent developments will become increasingly valuable. These models help address housing affordability, strengthen community cohesion and attract responsible long-term investment into Scotland’s rental market.
Dockside, Leith, stands as a practical example of this balance: high-quality, well-managed homes that meet policy requirements, support local households and deliver solid investor outcomes. It is a blueprint for how future BTR developments across Scotland’s Central Belt and regional cities can align commercial viability with social purpose.
Get in touch
If you’re developing a Build to Rent scheme and would like to explore affordable housing integration, we’d be pleased to discuss how we can support your plans.