Rising Rents in Edinburgh: How Landlords Can Balance Fair Increases with Tenant Retention

A recent case in Cumbria has reignited the debate around rent increases, after Liberal Democrat MP Tim Farron described a letting agency’s decision to raise rents by around 40% for tenants in Ambleside as “basically cruel.”

According to the BBC, the agency, Matthew Benjamin, notified tenants of the significant rise – translating to an additional £225 per month for some households. Tenants, many of whom work in hospitality and retail, voiced concerns about the affordability of remaining in their homes, while Farron highlighted the broader economic impact: hospitality businesses in the area are already running at just 66% capacity, partly due to staffing shortages linked to high housing costs.

The agency, which recently took over management of the block, claimed the increases were designed to bring rents in line with “current market rates,” while insisting the goal was not to displace tenants but to manage the change responsibly.

What’s Happening in Edinburgh’s Rental Market?

While this case centres on Cumbria, Edinburgh’s rental market is also under immense pressure. According to recent data:

• Average rents in Edinburgh have risen by over 13% year-on-year, reaching record highs in 2025.

• Two-bedroom flats now average over £1,350 per month, with one-bedroom flats averaging £1,050 per month.

• Demand is particularly intense in Leith, New Town, Stockbridge, and Bruntsfield, where competition for properties regularly leads to homes being let within days of listing.

• South Queensferry and Corstorphine have also seen sharp rent growth, driven by commuters seeking more affordable alternatives to the city centre.

These increases reflect a severe shortage of rental homes, strong demand from professionals, students, and relocating families, and ongoing constraints on new housing supply.

The Letting Experts’ View: Responsible Rent Reviews

At The Letting Experts in Edinburgh, we recognise the need for rents to reflect market conditions – but we also believe in a balanced approach that protects both landlords and tenants.

Sean McMahon, Director of Edinburgh Property Experts, explains:

“Rents across Edinburgh have surged in recent years, particularly in high-demand areas like Leith, Stockbridge, and Bruntsfield. While landlords understandably need to align rents with the market, sudden, steep rent hikes can damage relationships with tenants and lead to costly void periods.

We work with landlords to carry out annual rent reviews that are fair, evidence-based, and phased where possible. Our goal is to help landlords maximise returns while retaining good tenants and maintaining stable tenancies.”

Why This Matters for Landlords

Excessive rent hikes can result in:

• Higher turnover and void periods (leading to lost income)

• Negative publicity or reputational damage

• Greater regulatory scrutiny as government looks to tighten rent controls

By partnering with The Letting Experts, Edinburgh landlords can ensure:

• Rent reviews are transparent and backed by local market data

• Tenants receive reasonable, planned increases

• Landlords maximise income without risking long-term occupancy

Looking to Review Your Rents Responsibly?

If you’re a landlord in Edinburgh looking to keep pace with the market without losing good tenants, our expert team can help. We provide:

• Free rental assessments

• Transparent rent review strategies

• Full compliance with Scottish rental regulations

📞 Contact The Letting Experts today to discuss how we can help you balance income and tenant retention in 2025’s competitive market. You can also review your property via our Landlord Dynamic Rental Report online and free here.