Rental Market Update - June 2025

May marked another significant month for Edinburgh’s rental market, continuing the strong activity seen in recent months. For the first time in over five years, the number of rental properties listed on Rightmove in Edinburgh and The Lothians hit a new high, with 1,417 properties available on a single day.

While recent trends point to a continued increase in available rental stock, demand in central areas appears to be rebounding. Properties in the city centre are no longer experiencing extended void periods, and tenants searching in these locations may find they have less negotiating power than before.

We are also seeing an understandable rise in searches for HMO/student  properties as the new term looms.

We are entering the traditionally busiest months for the rentals market and we would expect this to raise the rices that landlords are demanding for rent.

The Bank of England has recently made its second Base Rate cut of the year, bringing the UK interest rate down to 4.25%, with further reductions expected, potentially bringing the rate to 3.75% or lower by year-end. This is leading to more favorable BTL mortgage rates, meaning that our landlords are seeing a greater net yield once their fixed rate mortgage rates come to an end. This marks a  favourable shift from the tougher returns of the past 3 years.