What you need to know about the current market and how we plan to navigate it
At Chapmans, one of the most important parts of our job is to keep a close eye on the Edinburgh rental market and to constantly consider how shifts and changes can affect our landlords and tenants. With the emergency rent cap legislation ending on 1st April, it shines a spotlight on rent valuations and pricing strategies more than ever. Here’s what you need to know about the current market and how we plan to navigate it.
The end of the rent cap and what it means for landlords
From 1st April, landlords with Private Residential Tenancies (PRTs) in place will no longer be restricted by the rent freeze and cap that was introduced as emergency legislation. This means rents can technically be increased by any margin. If tenants feel an increase is unfair, they can appeal to the Rent Officer. However, if the Rent Officer determines that the new rent is still below market rate, they may actually order a further increase.
While this legislative change offers more flexibility, we urge landlords to exercise caution. Rent control legislation is still being debated and could be reintroduced in the coming years. Rent reviews are always a balancing act between assessing the value of your current tenant and what income you might get if you re-let the property and how much you would need to invest to achieve a higher rental level on the open market. The key is to make any rental increases sustainable and in line with market rates, avoiding tenant turnover due to affordability concerns while ensuring rental income keeps pace with market conditions.
This blog explains what has been happening in the current rental market and how the market trends affect our decision process for rent review valuations.
1 The tenant market dynamic
As of March 2025, we are only just beginning to emerge from a tenant-led market. There are currently over 1,000 properties available for rent in Edinburgh, one of the highest levels in recent years. This means tenants have more options and are more willing to move if faced with rent increases they deem too high. We expect demand to start picking up again in April/ May, but we feel that the market most likely reached its peak last year, in early autumn.
Factors like employer national insurance increases and general cost-of-living pressures are also impacting tenants’ affordability. While strong rental values are a priority, securing the right tenant—rather than simply the highest-paying one—is equally as important.
2 What’s happening with high-end properties?
Our analysis shows that some of the larger, high-end properties that were tenanted around 2022 have seen a slight decline in rental value. Two years ago, post pandemic, the market premium peaked for properties with gardens and extra space for home working.
However, Edinburgh’s new short-term let licensing rules have resulted in an influx of high-quality stock in this segment of the market.
With fewer tenants now seeking large properties due to a return to office-based work and rising utility costs, this market is becoming more competitive. Landlords in this sector may need to consider more flexible pricing strategies to attract tenants.
3 The one-bedroom revolution
One-bedroom properties, especially larger ones, are in demand at the moment and experiencing strong rental growth. These properties appeal to both single occupants and couples, increasing demand and pushing up valuations. As hybrid working settles into a rhythm, many tenants are opting for smaller properties that suit their budget while still offering good commuting options. If you own a one-bedroom rental, expect to see healthy interest and rental increases.
4 Rental market trends by area
Certain areas of Edinburgh are seeing shifts in desirability and rental pricing:
- Dalry and Gorgie: These areas have seen strong rental growth over the past two years, but the current high level of supply is driving competition on pricing.
- Roseburn: Where Chapmans is based, Roseburn has remained resilient, likely due to excellent tram links, easy access across the city and to the Water of Leith, and a strong local community. Tenants are beginning to relocate here from Dalry and Gorgie for a better quality of life.
- City centre and New Town: Eternally popular, these continue to command strong rents, but premium properties need to be very well-maintained to justify their price tags.
5 Investing in your property
Well-maintained, well-presented properties continue to let the fastest. However, we are noticing an increasing number of rental properties in less-than-optimal condition due to financial constraints on landlords. While tenants may accept slightly higher rents to avoid moving, pushing rents too aggressively can prompt them to reconsider their options, leading to void periods and potential refurbishments.
We always recommend ongoing investment in property presentation to ensure your property remains competitive. And stands out in a crowded market. A little maintenance can go a long way in retaining quality tenants and achieving the best long-term rental income.
Our final thoughts
With all these factors at play, rental valuations must reflect the true state of the market, supply and demand, and the condition of individual properties. At Chapmans, we take a tailor made approach to every one of our rental reviews, to maximise returns for landlords and to retain great tenants where possible.
If you’d like more advice on your rental property, don’t hesitate to get in touch.
