Scottish rents dip as rent control assessments loom

Annual rents in Scotland fell by 0.2% in the second quarter of 2026 as the country’s three largest cities recorded little movement from a year earlier.

The latest Citylets figures show rent levels in the main markets have changed little as supply and demand become more closely balanced.

Local authorities are due to carry out their first market assessments ahead of the May 2027 deadline for rent controls.

Citylets said the subdued economic outlook could help current trends continue through the rest of 2026 and into next year.

Rent growth checked

The firm’s managing director, Thomas Ashdown, said: “This sustained period of market calm will be welcomed by both landlords and tenants alike.

“With the current trajectory likely to continue further into 2026 and beyond, market assessments by local authorities should contain around two years of minimal to negative growth in the data for Scotland’s largest markets.”

He added: “It is imperative that the very highest standard of diligence is given to the data to acknowledge and account for the anomalies in the 2020-24 period, caused by a global events and emergency legislation that controlled rents within tenancies.

“Since returning to full free market status in April 2025, the balance in the country’s main markets have kept rental growth in full check.”

Inflation risks remain

Events in the Middle East could push inflation higher towards the end of the year, the report warns.

That could increase the prospect of interest rates rising after households and businesses began the year expecting several reductions.

However, the Bank of England is described as being in no rush to add further financial pressure.

Rettie & Co said increased supply and greater regulatory clarity have helped steady rent levels, although tenant demand remains strong in many areas.

Landlord demand holds

Karen Turner, a director of Rettie, said: “The Scottish rental market is showing signs of returning to a more balanced position after a period of significant rental growth.

“While increased supply and greater regulatory clarity have helped steady rent levels, tenant demand remains strong across many areas as home ownership continues to be challenging for some due to affordability and mortgage costs.

“We expect rents to continue growing, but at a more sustainable pace than in recent years.”

She added: “We are seeing well-presented and maintained properties remaining particularly attractive to tenants, with Edinburgh and Glasgow continuing to demonstrate resilience, strong occupancy levels and long-term appeal for landlords and tenants alike.”