Page 31 - July 2025

EXPERT ADVICE

private rental market especially in pressured urban markets. A
What was the

public consultation is also exploring whether
landlords should be able to recover costs tied

in Scotland like in Q1 2025? to property upgrades, like energy efficiency.
In the first quarter of 2025, rental prices
across Scotland rose modestly, with year-on-
year increases remaining in the single digits.
Recent data from Citylets highlights how the private sector in Among property types, four-bedroom homes
experienced the highest annual growth,
Scotland performed during the first quarter of 2025.
with average monthly rents rising by 5.3%
to £2,048. However, over the past five years,
three-bedroom properties have seen the
steepest overall increase, climbing 51.6% to
an average monthly rent of £1,469. Student demand continues to keep the
In Q1 2025, rental growth for new leases four-bedroom segment strong
continued to cool, aligning more closely Letting times continued to lengthen, with the
cotland’s private rental market with inflation and reflecting patterns last average property now taking 33 days to let
entered 2025 with encouraging seen before the 2022 surge. With rent levels - five days longer than the same period last Rental properties in Edinburgh took an
S news: rent caps within tenancies now stabilised in key regions, many believe year. Despite this, 16% of properties were let average of 33 days to let - five days longer
officially ended on April 1st. Although there’s little justification for continued price within a week, and 58% within a month of than last year - offering some welcome news
longer-term rent controls are still controls. listing. One-bedroom homes remained the for tenants. One-bedroom properties saw
planned, lifting these restrictions most sought-after, taking just 26 days on the quickest turnaround, being let in just 24
provided relief to landlords and Property listings stayed on the market average to let, with 20% let within a week, and days on average. Of these, 18% were rented
letting agents, marking the first longer, yet rental prices held steady, even 68% within a month. within a week of listing, and 70% were let
return to open-market conditions in as the number of available homes increased within a month.
over two years. beyond recent averages. Some landlords In Edinburgh, average rents increased slightly
may now be more flexible on price, reassured compared with Q1 last year, rising 1.7% to Despite this, Edinburgh’s rental market was
by the ability to adjust rents to market value £1,506. This modest rise contrasts with the noticeably slower than in recent times. Only
after a year, if trends support it. double-digit increase seen between Q1 2023 13% of all properties were let within a week,
and Q1 2024, indicating a calmer market with and 58% within a month, reflecting a more
The dynamic has shifted: supply is finally less frenzied demand. subdued market that continues the quieter
catching up to demand, giving renters more trend observed at the end of 2024.
options. Smaller properties remain in high Three-bedroom properties in Edinburgh saw
demand, but uptake has slowed for larger, the biggest gains, with rents rising 2.1% year- If you’re interested in entering the buy-to-let
premium homes outside the HMO (House on-year to £1,935, highlighting demand from market or are a landlord looking for advice,
in Multiple Occupation) category. Student families seeking rental homes in the capital. ESPC Lettings can help. As a letting agent
demand continues to keep the four- One-bedroom rents also increased slightly, based in Edinburgh, we can assist with all
bedroom segment strong. up 1.9% to £1,055, though this was a slight stages of renting out a home, from finding
decrease compared to the previous quarter the right property to sourcing tenants to
The government’s proposed rent cap - CPI (Oct - Dec 2024). property maintenance.
plus 1 - alongside potential exemptions
for Build to Rent (BTR) projects, has
renewed hope for increased housing stock,
ESPC Lettings is an Edinburgh letting agent. We can help with marketing your rental property and finding the right tenants.
ESPC Lettings is an Edinburgh letting agent. We can help with marketing your rental proper ty and finding the right tenants.
Contact the team on 0131 253 2847 or landlord@espc.com.
Contact the team on 0131 253 2847 or landlord@espc.com.
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