September 9, 2026
We’re already more than halfway through 2026. How is the private rented sector faring? Citylets have just published their Q2 report on the state of the PRS in Scotland, so we’re going to take a look at the numbers and what they tell us.
The short version? The sector appears settled, active and balanced; we’ll look at the details below.
Post-pandemic the market experienced some dizzying rent inflation – these pressures have now eased, and this is reflected in more conservative rent increases in some areas of Scotland.
The PRS in Scotland, and the UK, has faced some major economic challenges and legislative changes of late. As property professionals involved in the market day-to-day, we’re well aware of them ourselves.
The Scottish perspective
Overall the Scottish rental market has reached a more balanced and sustainable level, with demand and supply well-balanced, and time-to-let (TTL) sitting between 26 and 31 days, depending on the type of property.
Average rents are currently on a slight upswing, however there has been little change across Scotland’s three major cities, and nationally there has been a slight fall of 0.2%.
Edinburgh
As befits a capital city, the rental market in Edinburgh continues to be strong and leads the Scottish market comfortably in terms of rents.
Property prices continue to be healthy, although there are still good prospects for those looking to invest in the buy-to-let market. The price of entry is higher in Edinburgh than elsewhere, but the rewards can be higher too.
Yields continue to be good, although other areas of Scotland are delivering higher yields, no doubt due to lower property prices.
Yield by Popular Postcodes (Flats)
| 2021 | 2022 | 2023 | 2024 | 2025 | |
| EH3 | 3.8% | 4.0% | 4.7% | 4.8% | 4.9% |
| EH7 | 5.1% | 5.5% | 6.5% | 6.3% | 6.3% |
| EH8 | 6.4% | 6.8% | 8.2% | 8.5% | 8.7% |
| EH9 | 4.8% | 5.2% | 5.4% | 6.3% | 6.2% |
| EH10 | 3.9% | 4.0% | 5.0% | 4.7% | 5.0% |
| EH11 | 5.3% | 5.6% | 6.5% | 7.0% | 7.1% |
| EH12 | 4.6% | 5.0% | 5.8% | 5.8% | 5.9% |
Glasgow
Scotland’s second city sees similar conditions to the capital, with a steady rental market and no shortage of aspiring tenants. There appears to be fewer signs of the stresses which affected the market only a few years ago.
While there are fewer applicants for each property, there are still more than sufficient to maintain a buoyant market within the city, any property can only be let to one tenant at a time after all.
Yields also remain good, outstripping Edinburgh in a number of instances.
Yield by Popular Postcodes (Flats)
| 2021 | 2022 | 2023 | 2024 | 2025 | |
| G1 | 6.2% | 7.1% | 8.1% | 7.8% | 7.8% |
| G2 | 6.6% | 8.9% | 9.9% | 9.0% | 9.9% |
| G3 | 5.0% | 5.8% | 6.4% | 6.3% | 6.5% |
| G4 | 6.0% | 6.3% | 7.8% | 8.0% | 8.0% |
| G5 | 6.7% | 6.8% | 8.0% | 7.4% | 7.4% |
| G11 | 5.3% | 5.7% | 6.5% | 6.2% | 6.3% |
| G12 | 4.5% | 4.7% | 5.0% | 5.3% | 5.8% |
Aberdeen
Once again, stability seems to be the watchword as far as the rented sector in Aberdeen is concerned. Family homes, especially those in a more rural setting are setting the running as far as rent and desirability are concerned.
With the real prospect of drilling licences being granted for oil and gas exploration, Aberdeen’s prospects are likely to brighten. While no-one is expecting a return to the heyday of the 1970s, any upswing in the city’s fortunes will be welcome.
To learn more about buy-to-let in the North East, read our most recent piece on Aberdeen; Aberdeen Property.
Yields in Aberdeen continue to hold strong, a consideration for landlords and property investors looking for a solid return on investment.
Yield by Popular Postcode (Flats)
| 2021 | 2022 | 2023 | 2024 | 2025 | |
| AB10 | 5.3% | 6.0% | 7.2% | 7.7% | 7.8% |
| AB11 | 6.1% | 6.6% | 8.3% | 8.4% | 8.6% |
| AB15 | 5.4% | 5.5% | 7.0% | 6.3% | 6.5% |
| AB24 | 7.4% | 8.2% | 9.9% | 9.9% | 9.8% |
| AB25 | 5.8% | 6.7% | 7.9% | 8.4% | 8.4% |
Dundee
Sitting beside the shimmering Tay, Dundee has seen its ups and downs as far as the rental market is concerned, however the city itself is reawakening, as we discussed in BTL in Dundee.
Infrastructure improvements and new investment into the city are all positive signs and should continue to lift the local economy, creating jobs and visitors. Such improvements will feed into the health of the rental market.
The buy-to-let market in Dundee reflects the general trends seen across Scotland, with small rises in the rents being asked and a generally stable market.
Yields continue to be good, again most likely a reflection of property prices which don’t scale the heights seen in Edinburgh and Glasgow.
Yield by Popular Postcodes (Flats)
| 2021 | 2022 | 2023 | 2024 | 2025 | |
| DD1 | 7.1% | 8.9% | 9.5% | 9.0% | 7.9% |
| DD2 | 6.3% | 7.6% | 9.0% | 8.9% | 7.5% |
| DD3 | 7.1% | 8.4% | 9.5% | 10.2% | 9.1% |
| DD4 | 7.0% | 8.8% | 11.0% | 10.3% | 8.9% |
| DD5 | 4.5% | 4.8% | 5.8% | 5.2% | 5.8% |
Advice from the property pros
We’ve been very selective about what we took from the Citylets report, otherwise we’d just have posted a link and left it there! You can read and digest the whole report at your leisure.
We’ve concentrated on the major cities, however, allowing for local and regional variations in rent, demand and availability, the picture painted is largely representative of Scotland across the board.
What the report tells us, and this is noted in the contributions from property professionals as well as the statistics, is that the state of the PRS in Scotland appears to be stable and balanced, with demand and supply still healthy.
No doubt there are investors who would dearly like to see more properties available, but as we have discussed in other posts, that is a problem which extends far beyond the PRS and its ability to materially affect.
Rents have evened out and found their level as the pandemic and other triggers have either faded into the past or become facts of life to be accounted for. We’re sure tenants would wish for lower rents, but they are now predictable.
Across Scotland, the average time to let is consistent at around 30 days, varying slightly depending on the type of property.
‘Balanced’ is a term used by many of the report’s contributors and you can almost feel the sense of relief that accompanies it. Stable and balanced markets are good for everyone involved, landlords, letting agents and tenants alike.
It suggests that the supply of good quality properties is adequate, if not ideal. Rents are at a sustainable and affordable level and there is no shortage of potential tenants looking for a place to make their own.
In short, all the ingredients necessary to ensure the longer-term health of the PRS are in place and opportunities for investors continue to present themselves.
To be clear, we’re not suggesting that the sound of popping champagne corks is drowning out all other sounds, the market has had a lot to contend with over the past 5 or more years, but things are once again moving in the right direction.
It’s a different picture to what we see in the media every time something which might affect the PRS is mentioned. There’s no imminent collapse as millions of landlords flee and the heavy fist of regulation presses harder still.
Like all sectors, buy-to-let has its ups and downs, these numbers suggest that, for the time being the PRS has absorbed all that’s been thrown at it and found a level at which it can continue to operate for the benefit of all concerned.
If you’d like to hear our thoughts about the state of the PRS in Scotland, and related (or even unrelated) matters, we are delighted to have been invited onto Citylets podcast!
It’ll be aired about a week after this piece is published, and we’d just like to thank Citylets for their kind invitation, and of course for their continuing reporting on the rental market in Scotland.
In summary…
There are few markets that thrive on uncertainty, and the PRS is Scotland isn’t one of them. The recent past has been challenging, with a pandemic, sudden swings in interest rates, international tension and a surfeit of legislation.
All of that has affected the market; we’ve commented previously on the Ties That Bind, however sooner or later a degree of stability returns, and hopefully these most recent numbers suggest that a period of calm is upon us again.
As always, time will tell, however the number in the Quarter 2, 2026, report demonstrates the resilience of the market and the potential which continues to exist for those looking to invest in the PRS in Scotland.
We’ll happily discuss the more esoteric corners of the buy-to-let market, however if you have queries of a more practical nature about the PRS in Scotland and how getting involved could benefit you, please get in touch.
Thanks for reading and we hope you’ve found this both interesting and encouraging.
Written by Chris Wood, MD & Founder of Portolio
Get in touch on 07812 164 842 or email [email protected]
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