Scottish letting agents give us their views on their local market.
“Q2 has been, as expected, very positive, with plenty of tenant enquiries, viewings and check ins. June, as in previous years, saw a high number of checkouts with students starting to finish up their studies but a continuing trend of landlords also looking to sell up which is ultimately leading to higher rents as stock reduces and demand increases, particularly as we enter the busiest Q3 period. HMO properties have done well this quarter when we’ve seen them struggle a little in the past few years. This has been encouraging and a shift away from some of the more expensive purpose built student accommodation in the city as their occupancy levels have reduced.”
“Tenant change overs have slowed a touch into Q2 2025 returning to a more normal level of natural movement. TTLs have reduced slightly from the last two quarters, and the market has definitely shown some settlement in terms of property rental prices with more balance being noticed. Demand remains high though for mid-market properties where the prices are set fairly. The rent increase opportunity to fair market value has been welcome, but from experience so far, the assessment by rent officers is falling short of true value in areas and are leaning to a much lower value than the open market is showing.”
“This quarter has been all about students and HMO properties, the busy part of the year now having moved to May and June, instead of the traditional September influx. Rents in this sector have stabilised, though demand for 3 bedroom properties has been less strong. The possibility of void periods has increased over the past couple of years for HMO landlords, with properties not being let for June, sitting empty until September and sometimes beyond. The 8% ADS has been a factor in landlords not selling in this sector, as this added cost reduces potential yield from such an investment in areas like Marchmont, but investors are looking further afield to areas like Sighthill, attractive to Heriot Watt and Napier students, where a better ROI is possible.”
“Q2 delivered the anticipated strong demand and robust rental levels from Edinburgh’s student market, with average rents up to £750-£800 per room, assuming properties could meet customer expectations on quality. Larger 5 beds were slightly slower though as 2nd year students appeared to delay forming groups. The professional (1 and 2 bed) market remained steady, again with strong demand across all areas. Rent controls ending have seen the sector level off as natural market forces take effect again. Time to Lets continue to be low for most properties. Landlord confidence has increased; many potential sellers opting to become new landlords instead.”
“After several years of intense pressure due to a chronic undersupply and high demand, there are now signs that the rental market is beginning to cool. Tenant demand has softened across Scotland over the past year, largely attributable to a decline in immigration for work and study, coupled with a modest uptick in first-time buyers exiting the rental sector. But structural imbalances in the housing market persist, with demand for quality rental accommodation remaining robust. For landlords with a clear strategy and a focus on the right locations, the PRS continues to offer attractive, long-term returns.”
“'Going steady' is how I would describe the rental market in Q2 2025. Supply and demand are closer than they have been for quite a while and as a consequence, rents are stabilising and more normal market activities have resumed. This market is benefiting those landlords who price competitively and invest in maintaining and presenting their properties to a high standard. Those that don’t are seeing longer ‘time to lets’ given the greater availability of homes.”
“Q2 started with a quieter rental market. During this time, the number of available rental properties was higher than the number of people looking to rent. This oversupply led to longer TTLs (time to let). However, the market has since shown positive signs. The trend of landlords leaving the market has slowed down, and new landlords have started to invest. Additionally, rent increases were implemented for existing properties to ensure they are priced at or near market value. The rental market is expected to get much busier in the coming months with the return of students, which is likely to increase demand and bring a more competitive atmosphere to the market.”
“Tenant enquiries have remained brisk throughout the last quarter across the board which is entirely predictable given the continued reluctance of investors to expand their portfolios or for new landlords to enter the market. However, the easing of mortgage rates may herald a more appealing economic climate so we earnestly hope that this will change things in the months ahead. Build to rent developers are in some part filling the gap but much of their focus is aimed squarely at students. Rents remain high in the capital and despite a bit of softening in the one and two bedroom sector, certain preferred areas are now beyond many peoples’ reach highlighting the urgent need for more investment in the sector.”
“While Q2 data shows a slowdown in Edinburgh’s rental market for larger HMO properties, at iERO we have continued our proven festival let strategy to eliminate costly void periods and significantly boost income during the summer, even as other properties sit empty. This targeted approach is particularly effective for larger HMO properties, offering landlords reliable occupancy and enhanced returns.”
“The rental market had a slow start in 2025 with lets taking longer than normal. It took a long time to kick start itself. Properties that were perceived to be too high were sticking and stock that was deemed more reasonably priced was letting. The market, now that we are into summer has taken off and demand is back but still some price sensitivity in play. If rents are at the higher end then the finished specification has match up. Tenants will rightly shop around to save £50/£100 month. The demand for student HMO’s is still high even with the volume of PBSA’s.”
“We are in the midst of the historically busy summer period, after a fairly stagnant first half of 2025. The supply/demand balance is shifting more towards lower levels of available properties and more urgency from prospective tenants, stronger rent levels and lower time to let. I fully expect these figures to improve this summer, with strong growth by the end of Q3, as festival fever and returning students ramp up demand. There is greater supply to the market in general, with better incentives for tenants to buy and holiday let properties entering the long-term rental market being two key factors. Steady annual growth, more in line with inflation, is now apparent. It remains a great time to be a landlord in Edinburgh and continued investment in rental property is vital to maximise the demand.”
“Our agency has found that tenant demand in Edinburgh remains resilient, with the market beginning to rebalance against the higher availability of rental properties earlier this year. We continue to see increased rental listings, among the highest we’ve seen for a few years, which has eased the pressure on tenants, offering more choice. Our one and two-bedroom flats are still in strong demand, particularly among young professionals and couples but listings are taking slightly longer to let. Overall tenant demand is steady, while landlords face modest pressure to be competitive and ensure that their properties meet the high standards expected by tenants in today’s market.”
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