What was the private rental market in Scotland like in Q4 2025?
Key Takeaways
- Scotland’s rental market cooled in late 2025, with rent growth slowing and supply and demand becoming more balanced after years of rapid increases.
- Falling inflation and lower interest rates eased pressure on landlords, helping stabilise rents and improving affordability limits for tenants.
- In Edinburgh, average rents rose only slightly, with four-bed homes seeing the strongest growth while two-bed rents dipped marginally, signalling a more stable market.
- Glasgow rents increased modestly overall, with high demand in central areas and strong competition for one- and two-bed flats, despite slower price rises.
- West Lothian saw sharper rent growth than major cities, especially for smaller homes, while longer letting times suggest renters now have slightly more choice.
The latest Citylets report is now available, highlighting how the private rental sector in Scotland performed during the final quarter of 2025.
The final months of 2025 brought a welcome sense of calm after a year marked by uncertainty in both the wider economy and Scotland’s private rental market.
Much of 2025 was shaped by the Housing (Scotland) Bill becoming law, alongside global economic turbulence. Changes to US trade tariffs created instability worldwide, with ongoing legal debates in the United States adding to market nerves. While easing tariffs may benefit exporting countries, the overall effect has been a lingering sense of unpredictability in global trade.
In the UK, budget announcements were heavily influenced by rumours, particularly around potential changes to stamp duty and landlord taxes. Although many proposed measures were not introduced, landlords in England did face income tax changes. Scotland chose not to follow suit immediately, though the possibility remains open in future budgets, keeping investors cautious.
On a more positive note, inflation steadily fell through the year, and interest rates declined, easing pressure on landlords with mortgages. This brought some financial relief, and further rate cuts are widely expected. Rental markets in major Scottish cities also began to stabilise, with supply and demand becoming more balanced than in recent years.
Inflation dropped sharply from 4.4% at the start of the year to just 0.2% by year-end. After years of rapid rent growth, rental prices largely levelled off across most cities, with affordability - rather than demand - now acting as the main limit on further increases.
Looking ahead to 2026, economic uncertainty remains likely. Oil price volatility, global political tensions, and potential strains within international alliances could create new challenges. However, if inflation stays under control, improving mortgage conditions and a more balanced rental market may offer some reassurance for the sector.
The rental market in Edinburgh
The average rent in the capital saw a modest increase compared with the same quarter last year, as the typical cost of renting in Edinburgh grew 0.2% year-on-year to £1,167. As with the previous quarter of 2025, it is safe to say that the Edinburgh rental market is going through a period of stabilisation following the strong growth recorded in 2023 and 2024.
Four-bedroom properties experienced the highest rental growth, with average rents increasing by 3.3% to £2,517, reflecting sustained demand from families seeking larger city homes. As one-bedroom properties saw a slight 0.7% year-on-year rise to £1,079 and three-bed homes grew 1.4% to £1,890, the average rental cost of two-bedroom rents dipped marginally by 0.1% to £1,443.
Following a period of rent realignment with open market levels, rent reviews have moderated, contributing to a more stable and evenly balanced rental market.
On average, it took 25 days for rental listings in Edinburgh to find a tenant, three days longer than the same period last year, giving renters a bit more breathing room. One-bedroom properties were the fastest to be let, averaging just 19 days on the market. Of these, 22% were rented within a week, and 81% were snapped up within a month.
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The rental market in Glasgow
The latest data from Citylets shows that rental prices in Glasgow have experienced modest growth overall. In the final quarter of 2025, the city’s average monthly rent reached £1,164 - just a 0.6% increase compared with the same period last year.
Mirroring that of the Edinburgh rental market, the biggest gains on average rent in Glasgow was seen in 4-bed properties, which experienced a notable 8.6% rise year on year. Rents for one-bedroom properties increased modestly by 0.3% to £889, and two-bedroom homes grew 1.1% to £1,205. In contrast, three-bedroom rents eased slightly, falling 0.6% to £1,571.
Demand remains exceptionally strong - especially in the City Centre and West End, driven by students and young professionals - while rents continue to rise more slowly, with competitive bidding common for well-presented one- and two-bedroom flats.
The average time to let in Glasgow was quicker than Edinburgh and Scotland overall (24 days), despite being one day slower than the same period in 2024. 1-bedroom properties were let in the quickest timeframe - 19 days - with 27% let within a week and 80% finding new tenants within a month.
Despite taking 45 days on average to let, 4-bedroom homes were the only size of rental property to let quicker than last year… 5 days speedier than the final quarter of 2024.
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The rental market in West Lothian
In West Lothian, average monthly rents increased by 12.6% compared to Q4 2024, reaching £1,057. One-bedroom properties saw the largest rise, with rents up 10.5% to an average of £737 per month. Three-bedroom homes also recorded strong growth, increasing 9.5% year-on-year to £1,173, while two-bedroom properties averaged £914, reflecting a 6.9% uplift.
Rental homes in West Lothian took an average of 25 days to secure a tenant, four days longer than during the same period last year. Of all properties let, 18% found tenants within a week, and 67% were rented within a month.
One-bedroom homes remained the quickest to let, averaging just 21 days on the market - four days faster than the previous year. Nearly three in ten (29%) were rented within the first week, and 81% were secured within a month, highlighting sustained demand for smaller homes in the area.
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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.