Scottish letting agents give us their views on their local market.
“Q1 has seen a steady amount of move ins but there have been quite a number of landlords enquiring about selling, with some committing despite low property sale prices creating more deficit in the level of stock, but some of this will return as they refurb and re-let. Generally, I predict there will be another busy summer as demand continues to be high and not enough stock available. Levels of enquiries have been a little unpredictable with a busy January, quieter February and March picking up again but we have already seen students looking for the summer months, keen to get ahead of the rush.”
“Investment in the buy-to-let market started slowly in Q1 of 2025, due to the announcement of the increase of ADS, but with changes to rent controls we’re seeing landlords being tempted back to the market. Tenant demand remains strong, although higher-end properties are taking longer to let and one-bedroom furnished properties are still the highest in demand. There has also been a surge in tenants looking for new properties because their landlords are selling, meaning a rapid increase in a competitive market.”
“1Let experienced a steady start to 2025 with supply and demand evenly matched. Time to Let remained low with sub £1k p/m properties moving the quickest. We experienced a surge in new business enquiries from property owners who are moving on but deciding to retain the property and rent it rather than sell. An emerging general trend is landlords with one property deciding to leave the market whilst landlords with multiple property portfolios are adding additional properties to strengthen their position in the market. Overall confidence for 2025 is high with favourable conditions for both landlords and tenants.”
“Q1 saw a slower than normal uptake in lettings, however as we progress into the end of Q1 the market has started to rally. Whilst excessive taxation is keeping investors from the PRS to the detriment of affordable rents, we are seeing landlords seeking to switch agents for a more personalised service. However, long term, unless our government listen to the stakeholders of our industry and stop seeing private landlords as piggy banks to be raided, the housing shortage in Scotland will continue. The sooner we have a competent economist ruling on taxes, the sooner the industry can provide much needed homes.”
“Q1 has seen a busy start to 2025. 1-bed flats below £1,000 pcm are in high demand, whilst 2-bed flats have seen rents ease slightly following increased supply through autumn/winter. The city’s HMO market is showing early signs of replicating the pattern of previous years, with broadly half of tenants staying and half leaving, but with new market rents typically now being in the region of £700 - £800 pcm for a room in a shared flat. Despite ADS increases and challenging borrowing conditions, investor activity remains steady if not increasing, as the attraction of bricks/mortar as a safe haven for wealth rises again in an uncertain world.”
“The last quarter has seen a dramatic slowing of the market. Up to Q3 2024 most of our adverts were only live for 15-20 minutes whereas now they’re staying up for days and weeks. We’re conducting multiple viewings instead of a single viewing with pre-selected candidates. Most landlords are still keen to get the high prices they’ve become used to over the past three years or more so we haven’t seen a drop off in asking price that would help get the market moving.”
“The Glasgow rental market in Q1 has continued to remain slow. We would generally expect to see a slow market as we leave Q4, but this naturally tends to pick back up midway into Q1. This has not happened this quarter. Rental prices remain high despite tenant demand falling. We have found that landlords have continued to exit the market, with new business being almost non-existent. As we near the end of the quarter, it is only now that we are beginning to see an increase in new business. As we move further into 2025, the implementation of an 8% ADS is likely to increase the financial barriers to property investment in Glasgow.”
“The first quarter was rather slow and new property numbers were down compared to previous years. That said, the quality of the new stock does seem greatly improved. Edinburgh remains a good bet for new landlords seeking to enter the market with rents at an all-time high, although there may be signs of a softening as affordability is pushing tenants further out of town. Larger, non HMO properties can be slow to find tenants but that is not unsurprising. What is more obvious is that this is a sector of the market where rents are slipping back a bit so we may see more applications for conversion this year which would be a good thing.”
“In the first quarter of 2025, our lettings team have been extremely busy due to a significant increase in available properties throughout Glasgow and surrounding areas from the end of 2024. The rental market in Glasgow and Edinburgh has been buoyant with properties being reserved quickly with multiple notes of interest received at the sought after rental figure. Due to the change in the HMO market, we are seeing many of our landlords invest money into their properties during void periods ensuring their portfolio remains at a high quality, making them more attractive and improving their assets.”
“Watt Property have observed a notable shift in the residential rental market this year. Rental property availability has increased significantly, with supply levels at the highest we’ve seen for a number of years. This rise is likely to be a direct result of the restrictions on short term lets, with many transferring over to the long term market. This rise in supply and slight decline in tenant demand has led to longer letting times and downward adjustments to the market rents. Despite this, the market remains competitive, particularly for one-bedroom properties.”
“As of March 2025, the Edinburgh rental market is transitioning as the emergency rent cap legislation ends on April 1st. This provides more flexibility for landlords but requires caution due to ongoing debates about future rent caps and the current high supply levels. The market has seen consistently over 1,000 available rental properties which is giving tenants more options and affecting demand and thus price. High-end properties have seen slight declines due to changes in tenant preferences (less working from home, cost of living) and short-term let regulations have seen greater supply. One-bedroom properties are in high demand.”
“The PRS market has been fairly steady in the West with healthy new instructions of good calibre coming to the market along with some overseas/expatriate investors happy to enter the market. On the flip side, a few mature landlords have decided to cash in and exit the market. Enquiry levels are noticeably down year on year and the overseas student market will no doubt take a hit with the global economic conditions especially from China. It is likely that a majority of landlords are getting prepared for institutional rent rises across the board to get rents more in line with the current market.”
“In Q1 2025, Edinburgh’s rental market experienced a notable shift. The number of available rental properties surpassed 1,200, the highest in over three years, leading to a cooling of rental inflation. Meaning constant market assessment is required to avoid increased time to let and ensure properties are listed at the correct rental to attract long term tenants. On the sales front, improved affordability and lower mortgage rates have bolstered buyer confidence, with first-time buyers accounting for approximately 36% of transactions. Additionally, the impending reduction of the zero-tax stamp duty threshold in April 2025 has accelerated house sales.”
“The first quarter of 2025 has seen a significant shift in the rental market, with approximately 1,200 properties becoming available since February. This increase in supply gives tenants more options than we’ve seen in recent years. As a result, landlords must ensure their properties are well-maintained and priced competitively based on local demand and comparable listings. Additionally, Q1 has seen a rise in landlords seeking to switch agencies, highlighting the importance of service and support in this increasingly competitive market.”
“The first quarter of 2025 was busier than last year which was encouraging, however over winter we observed a huge surplus of available properties across the city, so supply outstripped demand and some rents were reduced to combat increasing TTLs. Our observation is that the reduction of international students has had a detrimental impact on the PRS due to the UK Government ending the inclusion of family members on student visas. The trend of landlords leaving the PRS has continued in 2025 unfortunately, although we have managed to retain some of the rental properties as they have passed from one investor to another.”
“Tenant change overs have continued to be higher than usual after the festive period and into Q1 2025. TTLs have crept up a little bit and we feel there is a bit of settlement in the market in terms of property rental prices, showing a potential slowing of the growth or rent prices. Demand remains high for 1 and 2 bedroom mid-market properties where the prices are set fairly. The rent increase caps being removed in favour of a fair increase to market value process have been very welcome and we are looking forward to continued growth in the months ahead.”
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