Scottish letting agents give us their views on their local market.
“Q4 has seen overall a steady rental growth despite all ongoing issues being faced in the North-east. Tenant demand has been at a consistent level throughout the year and Q4 with most well-presented properties achieving early activity and applications. Aberdeenshire continues to see a higher level of demand than supply currently and prices continue to increase as a result.”
“Q4 2025 rounds off an excellent year for the newly rebranded iERO (formerly The Flat Company) within Edinburgh’s resilient lettings and sales market. In line with Citylets data, we have seen our rents in Edinburgh continue to rise with average TTL remaining under three weeks, reflecting sustained tenant demand and limited supply. Festival rentals again delivered exceptional results for increased income and minimising void periods. Looking ahead to 2026, we are highly optimistic about continued success across sales, residential lettings and festival rentals in Scotland’s strongest property market.”
“The Edinburgh property market in Q4 has seen a notable oversupply of properties. This could be a knock on effect of the council’s decision to grant 6 week short-term temporary licences to landlords during the summer months to accommodate tourist demand. This influx of properties has shifted the balance of supply, yet rents remain resilient. Despite this, many landlords are reassessing their positions in the market influenced by new legislation preventing landlords from refusing tenants with pets, the potential introduction of rent controls and wider uncertainties surrounding future regulatory changes.”>
“Aberdeen’s rental market has moved into a more balanced position through Q4. Supply has tightened from the oversupply seen in recent years while demand has remained steady, particularly for 1 and 2 bed flats. This has created a more stable environment for landlords. Rents remain lower than in other major Scottish cities, supporting affordability and underpinning investor interest. However, the recent budget offered no relief for the North Sea sector with the Energy Profits Levy unchanged and job losses continuing to weigh on sentiment. Despite this, cautious optimism remains for 2026 should policy shift.”
“The Edinburgh market continues to be slow. After several years of intense rental inflation driven by supply shortages we’re now seeing a gradual narrowing of the supply-demand gap. This shift is beginning to ease the pace of rental price growth. Affordability remains a critical issue for tenants, which naturally limits the scope for aggressive rent hikes. Looking ahead, we expect to see steady but lower levels of rental inflation more in line with historic norms rather than the volatility of recent years. For investors, this environment offers an opportunity to focus on portfolio resilience looking at energy efficiency, compliance and tenant experience which we feel are key differentiators in a market that is becoming more competitive and regulated.”
“With the natural seasonal reduction in activity compared with Q3, Q4 2025 was still a very busy quarter, particularly in October. Demand remained higher than supply, which helped to keep rent levels up while stock shrank by 20% by the end of the quarter. This was particularly evident in the two-bedroom market. We expect this to shift again towards three and four-bedroom properties in 2026, as families start to look for places to move in the first half of the year. Landlords have adapted to the market, offering higher-quality properties which in turn has helped contribute to an overall increase in rents over the year.”
“Our team have seen a notable shift in stock levels this quarter with more landlords than any other year now choosing to sell investment properties, reducing long-term rental stock and increasing tenant enquiries for new homes. A high volume of our tenant enquiries are now from those who have been served Notice to Leave due to their landlord selling, which seems to be a direct effect of the introduction of the Housing Bill and more legislative changes being placed on residential tenancies. This contraction is tightening stock levels across the city and keeping demand strong, which can only mean that rents are likely to continue to rise in 2026.”
“Q4 has seen a general slowing of the PRS market in Glasgow with less stock available in prime residential areas. Rental affordability is being squeezed in traditional hotspots, pushing prospective tenants to outlying areas with good transport links where travel costs are now a significant consideration. The city remains popular with students with parents paying premium rents for access to key institutions. Tenants are focusing more on total running costs and EPCs are central to decisions. We are also working with a major shipbuilder seeking staff accommodation within 20 minutes of the shipyards, boosting demand in outlying areas aided by the new Renfrew bridge.”
“In the last quarter, the market has slowed down with tenant demand. We have an increased stock of properties compared to this time last year. Tenants are beginning to take notice of the rental market and are invested in The Housing (Scotland) Bill. We have noticed the less expensive properties are renting quicker than properties over £1000 per month. Landlords are continuing to leave the rental market albeit at a slower pace, due to the onerous costs of regulation. We are optimistic that the new younger generation of landlords are entering the market and are keen to start their investment journey with the help of an experienced letting agent.”
“In Q4 2024 I noted we didn’t have a seasonal slowing and Q4 2025 is no different. We have had a huge quarter in terms of bringing in new stock and have recorded some of our best months in terms of revenue. The pace of turnover of tenancies is continuing with a number of people moving on over the festive period. The historic battening down of hatches for Christmas doesn’t seem to be happening as people maintain a more fluid lifestyle. Maintaining our strong core has allowed us to manage this with gusto and we are looking forward to 2026 and the challenges it will bring.”
“This quarter we’ve seen several of our landlords returning to the rental market after leaving to try and sell their properties, finding the sales route far slower and more challenging than expected. Instead of sitting with empty properties, they’ve chosen to re-let as a positive alternative. Rental demand in Edinburgh has remained consistently strong giving confidence that returning to the sector is the safe and sensible option for now. For us, it’s been a steady and reassuring end to the year. We’ve been pleased to help familiar faces get their properties back on the market smoothly, successfully let again and see some steady income return to their pockets.”
“With 2025 drawing to a close it is a good time to reflect on the past year’s market. It was a slow start to the year and it took a while to start motoring. Interest levels were strong in the spring/summer and early autumn periods over most price points with demand strong for 1 and 2 beds and family properties. We saw an early tapering off in October. Lets still happen but we do see a softening of rent levels being achieved now in order to get some properties over the line as the demand is just not at the peak point of earlier in the year.”
“The market is following the normal pattern of seasonal slowdown as many tenants do not want to move over Christmas. Rents remain strong and have increased again across the board in 2025, however there is always a seasonal dip where rents come down slightly at this time of year and time to let increases as competition decreases. The new housing bill will now start filtering into the lettings market with further pressure being put on the First-tier Tribunal system, but it will provide tenants with more rights. Landlords should educate themselves on the new bill to ensure they are compliant.”
“Q4 2025 was a pivotal quarter for the sector, with The Housing Act receiving Royal Assent and the fourth and final Bank of England interest rate reduction of the year, to 3.75%, being announced. It is thought the base rate will reduce further over 2026, presenting opportunities for both existing and new landlords. The market remained buoyant despite the usual winter slowdown. The student sector was affected by an oversupply of purpose-built student accommodation, although demand for traditional tenement student properties remains high, with weaker demand over the winter months. While the Act brings greater tenant rights, the market remains strong. Following several unpredictable years, 2025 showed more consistent trends, which should support portfolio growth and help attract new landlords.”
“The final quarter of 2025 saw Edinburgh’s PRS market stabilise after a year of mixed signals. Demand remained resilient, particularly for 1 and 2 bed properties, which continued to outperform larger homes. Improved supply, driven by regulatory changes and new landlords bringing stock to the market, eased some pressure but rents held firm, reflecting ongoing affordability challenges. While annual growth has moderated from the highs of recent years, the market retains strong fundamentals, supported by Edinburgh’s vibrant economy and student demand. Landlords are increasingly focused on providing a quality product, with energy efficiency and competitive pricing, to secure quality tenants in a more balanced landscape. Overall, Q4 closed on a note of cautious optimism, with signs of normalisation after prolonged volatility. We go into 2026 in good shape.”
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