Reviewing Rents in 2026: A Balanced Approach for Today’s Market

As we move into the spring and early summer period, this is traditionally the time of year when we carry out a full review of rental values across our portfolio.
It is an important part of managing your investment properly. Equally, it needs to be handled with care, awareness of the market, and an understanding of the pressures both landlords and tenants are currently facing

How We Review Rent

We do not apply increases as a blanket approach. Each property is reviewed individually, using a combination of:

Current market evidence from comparable properties
Letting performance and enquiry levels
Condition, presentation, and location of the property
Recent rental trends across Edinburgh

This ensures any recommendation is grounded in evidence rather than assumption.

What the Market is Telling Us

Over the past few years, Edinburgh has seen strong rental growth, driven by high demand and limited supply. Recent Scottish Government data shows that average rents in Edinburgh have increased significantly since 2020, with one bedroom properties alone seeing notable uplifts year on year. Demand remains healthy, however the pace of growth has begun to stabilise.
More recently, we are seeing a shift:

Some properties are taking longer to let
Price reductions are becoming more common on the portals
Tenants are becoming more price sensitive

This is not a downturn, but it is a clear sign that the market is finding a more balanced position.

Our Approach to Rent Increases

With this in mind, our approach is measured and pragmatic. Where the data supports it, we will recommend an increase. However, this will always be considered against:

Tenant affordability
Length and quality of the tenancy
Risk of void periods versus achievable uplift

We are also seeing an increasing number of tenants finding it more difficult to absorb higher rental costs. This is an important factor in our recommendations, as retaining a good tenant is often more valuable than pushing for the absolute top end of the market.

If Your Property Has Recently Been Re-Let

If your property has been recently re-let, it will not be affected by this review. Under current legislation, rent increases can only be applied once every 12 months. Your property will be reviewed again at the appropriate legal point.

What Happens Next

We will begin issuing rent increase notices next month, with increases taking effect depending on when the last review was carried out.For most landlords, this will fall on:

1 August 2026
1 September 2026
1 October 2026

Each notice will clearly set out the proposed new rent and the supporting rationale.

A Flexible, Client-Led Approach

We fully appreciate that every landlord’s circumstances and objectives are different. If you would prefer not to apply a rent increase at this time, simply let us know. We will always respect your decision and align our approach with your long term strategy. You can contact us directly at: rentals@homesalesandlettings.co.uk

Final Thoughts

The rental market is evolving. Strong growth in recent years has created opportunity, but today’s conditions call for a more considered approach. The focus now is on balance, sustainability and protecting both your income and your tenancy.

As always, our role is to guide you through that process with clear advice, grounded in experience and market evidence.

Reviewing Rents in 2026: A Balanced Approach for Today’s Market