Scotland’s three largest cities witnessed almost no change in rents over the past year, contributing to a national picture of a 0.2% negative annual growth in the second quarter of 2026. A good balance between supply and demand underpins sanguine trends which seem likely to persist towards the May 2027 deadline given the subdued economic outlook.

Citylets MD 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 2 years of minimal to negative growth in the data for Scotland’s largest markets.

“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.”

Events in the Middle East are poised to increase inflation towards end of the year which could see interest rates rise, however the Bank of England is understandably in no rush to further burden households and businesses who, at the turn of the year, were expecting several decreases.

Karen Turner, director of lettings at Rettie & Co, observed: “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. 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.”