What was the private rental market in Scotland like in Q3 2025?
The latest Citylets report is now available, highlighting how the private rental sector in Scotland performed during the third quarter of 2025.
After nearly 18 months of debate, the Housing (Scotland) Bill finally passed on 30 September, ending a long period of uncertainty around the future of rent regulation. Once it receives Royal Assent, the law will allow local councils to propose Rent Control Areas, where annual rent increases are capped at inflation (CPI) plus 1%, up to a maximum of 6%. Build-to-Rent and Mid-Market Rent properties will be exempt, as will purpose-built student accommodation.
Citylets notes that even a 6% rise, compounded over a decade, would represent almost 80% growth - higher than the long-term market average. In that sense, the new system may offer predictability without excessive distortion.
At a national level, the Scottish private rental market cooled further in the third quarter, posting annual growth of just 1.9%. This is roughly half the rate of the previous quarter and the slowest pace in almost five years. Rents rose modestly or stayed flat across most major cities, with Dundee seeing the sharpest fall at minus 7.9% year-on-year. Despite political noise, the data points to a market finding equilibrium, with strong demand meeting improved supply and seasonality patterns returning.
Across Scotland, the average rent now stands at £1,218 per month. Three-bedroom homes recorded the fastest annual rent growth, rising by 5.5% to £1,617 per month, while one-bedroom flats climbed 1.3% to an average of £857. The average time to let increased slightly to 26 days, around three days longer than at the same point last year. One-bedroom flats were the quickest to find new tenants, taking an average of 22 days to let. Around one in five properties were let within a week, and over two-thirds within a month, indicating continued strong demand.
The rental market in Edinburgh
Average rents in Edinburgh remained broadly stable during Q3, edging down by 0.1% year-on-year to £1,597 per month. This suggests the market has levelled out following the rapid growth seen in 2023 and 2024.
One-bedroom properties saw a 2.1% annual rise to £1,129, while two-bedroom rents dipped slightly by 0.7% to £1,479. Three-bedroom homes fell by 1.0% to £2,049, and four-bedroom properties recorded a small increase of 0.2% to £2,825.
The average time to let in the capital lengthened modestly to 24 days, around four days slower than last year. One-bedroom flats continued to dominate demand, with the vast majority let within a month. Agents across the city report that demand remains especially strong for one- and two-bedroom homes, particularly in the EH6 and EH7 postcodes, where many properties are still being rented out after just a single viewing.
Despite some landlords continuing to exit the market, others are returning or entering for the first time, encouraged by more stable conditions and a clearer outlook on regulation.
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The rental market in Glasgow
Glasgow’s average rent rose by 2.2% year-on-year to £1,229 per month, maintaining its steady upward trajectory. One-bedroom homes in the city averaged £915, down 0.9% on the year, while two-bedroom properties rose by 2.2% to £1,246. Larger homes continued to perform strongly, with three-bedroom rents up 6.1% to £1,809 and four-bedroom properties climbing 6.9% to £2,733.
Properties in Glasgow took an average of 21 days to let, unchanged from last year. Smaller flats close to universities, hospitals, and major transport routes remained the most sought-after, though family-sized homes also moved quickly. Stock levels have stayed tight, with many landlords opting to sell rather than renew tenancies, while a growing number of tenants are seeking long-term, pet-friendly homes.
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The rental market in West Lothian
West Lothian recorded a small decline in rents during Q3, with the average monthly cost down 1.2% compared to the same period last year, now standing at £1,005. One-bedroom properties rose 5.8% to £731, while two-bedroom homes increased 3.3% to £898. Three-bedroom rents, however, fell sharply by 14.1% to £1,043.
Letting times lengthened to an average of 34 days — 16 days slower than last year — suggesting slightly softer conditions following strong growth through 2024. Nevertheless, demand remains robust, especially from tenants relocating from larger cities in search of better value while staying within commuting distance of Edinburgh and Glasgow.
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ESPC Lettings
If you’re interested in entering the buy-to-let market or are a landlord looking for advice, ESPC Lettings can help. As a letting agent based in Edinburgh, we can assist with all stages of renting out a home, from finding the right property to sourcing tenants to property maintenance.
Get in touch with the team today on landlord@espc.com or 0131 253 2847.