Edinburgh leads UK big six in property price and rental growth

JLL report reveals 6.1% price increase and 3.6% rent rise in the Scottish capital, alongside Glasgow’s resilient market. Edinburgh has ...

September 30, 2026

JLL report reveals 6.1% price increase and 3.6% rent rise in the Scottish capital, alongside Glasgow’s resilient market.

Edinburgh has recorded the strongest price and rental growth among the UK’s Big Six regional cities over the past year, according to global property advisor JLL. The city saw average prices of new-build apartments rise by 6.1%, while rents increased by 3.6%, as detailed in JLL’s latest Big Six Residential Development Report.

Both Edinburgh and Glasgow have experienced resilient price and rental growth due to strong demand and limited supply. Rents for new-build apartments in Edinburgh increased by 3.6% and by 2.7% in Glasgow, with prices rising by 6.1% and 2% respectively.

This compares to an average rental growth of 1.8% across the Big Six, where available homes were 49% lower in July than a year earlier.

JLL has upgraded its UK rental market forecast, now projecting a 3.5% rise in rents for 2026, up from its previous 2.5% estimate. Increased tenant activity, partly influenced by the first phases of the Renters’ Rights Act in May, alongside elevated mortgage rates and affordability pressures, are sustaining rental demand.

A shortage of new homes continues to affect both Scottish cities.

Despite renewed investor interest in Scotland’s build-to-rent (BTR) market, driven by regulatory clarity, significant viability challenges persist. Rising construction and financing costs are limiting new development. Edinburgh currently has approximately 4,700 BTR homes operational or in development, while Glasgow has around 8,000.

Jason Hogg, Director – Head of UK Regional Land at JLL, commented: “Edinburgh and Glasgow continue to demonstrate the impact of strong demand meeting limited supply. Both cities have recorded resilient price and rental growth, while a shortage of new homes is maintaining pressure across the market. The viability challenge needs a renewed approach if we are to see new development break ground in either city.”

He added that while Scotland offers advantages like a new housing bill and a clearer regulatory environment, the viability gap remains too wide without some form of support.

Meg Eglington, UK Residential Research Associate at JLL, stated: “Rental markets across our Big Six cities have become noticeably tighter over the past year. Tenant activity has been strong, and available homes are being absorbed quickly, but so far that hasn’t translated into significant rental growth because markets entered the year with relatively elevated levels of stock.”

Eglington further noted that if demand remains high and availability continues to fall, there will be more scope for pressure on rents in the second half of the year, with viability constraints from higher financing and construction costs remaining the biggest challenge to housing delivery.