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EXPERT ADVICE

What was the private rental market
in Scotland like in Q3?

One-bedroom flats continued to dominate demand,
Recent data from Citylets highlights how the private sector in Scotland with the vast majority let within a month.
performed from July-September 2025

he Scottish private rental market Mid-Market Rent properties will be exempt, as
showed signs of cooling in Q3 2025, with will purpose-built student accommodation.
Tmodest rent growth across most cities.
Meanwhile, landmark legislation now brings Citylets notes that even a 6% rise, compounded quickest to find new tenants, taking an average Despite some landlords continuing to exit
clarity on rent regulation for the future. over a decade, would represent almost 80% of 22 days to let. Around one in five properties the market, others are returning or entering
growth - higher than the long-term market were let within a week, and over two-thirds for the first time, encouraged by more stable
After nearly 18 months of debate, the Housing average. In that sense, the new system may within a month, indicating continued strong conditions and a clearer outlook on regulation.
(Scotland) Bill finally passed on 30 September, offer predictability without excessive distortion. demand.
ending a long period of uncertainty around If you’re interested in entering the buy-to-let
the future of rent regulation. Once it receives At a national level, the Scottish private rental Average rents in Edinburgh remained broadly market or are a landlord looking for advice,
Royal Assent, the law will allow local councils market cooled further in the third quarter, stable during Q3, edging down by 0.1% year- ESPC Lettings can help. As a letting agent
to propose Rent Control Areas, where annual posting annual growth of just 1.9%. This is on-year to £1,597 per month. This suggests the based in Edinburgh, we can assist with all
rent increases are capped at inflation (CPI) plus roughly half the rate of the previous quarter market has levelled out following the rapid stages of renting out a home, from finding the
1%, up to a maximum of 6%. Build-to-Rent and and the slowest pace in almost five years. growth seen in 2023 and 2024. right property to sourcing tenants to property
Rents rose modestly or stayed flat across most maintenance.
major cities, with Dundee seeing the sharpest One-bedroom properties saw a 2.1% annual
fall at minus 7.9% year-on-year. Despite rise to £1,129, while two-bedroom rents dipped Get in touch with the team today on landlord@
political noise, the data points to a market slightly by 0.7% to £1,479. Three-bedroom espc.com or 0131 253 2847.
finding equilibrium, with strong demand homes fell by 1.0% to £2,049, and four-
meeting improved supply and seasonality bedroom properties recorded a small increase
patterns returning. of 0.2% to £2,825.

Across Scotland, the average The average time to let in the capital
rent now stands at £1,218 per lengthened modestly to 24 days, around four
month. Three-bedroom homes days slower than last year. One-bedroom flats
recorded the fastest annual continued to dominate demand, with the vast
rent growth, rising by 5.5% majority let within a month. Agents across the
to £1,617 per month, while city report that demand remains especially
one-bedroom flats climbed strong for one- and two-bedroom homes,
1.3% to an average of particularly in the EH6 and EH7 postcodes,
£857. The average time where many properties are still being rented
to let increased slightly out after just a single viewing.
to 26 days, around three
days longer than at the
same point last year. One-
bedroom flats were the ESPC Lettings is an Edinburgh letting agent. We can help with marketing your rental property and
finding the right tenants. Contact the team on 0131 253 2847 or landlord@espc.com.

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