A Critical Shortage of Family Rental Houses
Scotland’s two largest cities are experiencing a major shortage of family rental houses, particularly those with three or more bedrooms, a private garden, and in popular residential areas. These types of homes have never been the main focus of traditional buy-to-let investors, who historically targeted smaller flats.
But as family demand grows (driven mainly by job relocations, international moves, and life transitions), this under-supplied segment of the private rented sector (PRS) is struggling to meet the demand.
With Scottish Government policies over the past decade having restricted property investment in Scotland, our two main cities are now ill-equipped to attract a talented workforce to take up senior positions within businesses in the Central Belt.
In both cities, the numbers are stark. Between August 2024 and August 2025, just 231 “houses” with four or more bedrooms were advertised for rent on Rightmove within a 5-mile radius of the centre of Edinburgh. Over the same period, more than 1,500 properties in this category were listed for sale. The mismatch between supply and demand of family rental homes leaves relocating families with limited options, and this in turn impacts employers trying to recruit talent from other parts of the UK or from overseas.
Glasgow paints a similar picture. Within a 10-mile radius of the centre of Glasgow, only 297 houses with 4 or more bedrooms were listed for rent on Rightmove, with just over 5,000 being listed for sale within this same radius and timescale.
In both cities, much of the rental supply of houses comes not from professional landlords, but from private homeowners who are temporarily leaving the cities.
However, many homeowners are unsure whether renting their home is viable. They look online, see almost no comparable homes available for rent, and assume there must be no demand. In fact, the opposite is true: these homes are so desirable that they often rent within days and sometimes before they ever reach the open market.
At Rettie, we work with high-quality tenants (including NHS professionals, senior executives, university staff, and international families), who are actively searching for family houses.
Why Families Want to Rent First
Relocating to a new city, especially with children, is a significant life change. Families moving to Edinburgh or Glasgow do not always want to buy immediately. Most want to:
- Rent a family home near good schools and green space
- Settle children into new routines before making long-term decisions
- Explore the city to determine the best neighbourhood for their lifestyle
- Avoid the pressure of buying a home during an already stressful transition.
This makes your home, if you’re moving away, exactly what many families are looking for. And, with the right support from a professional letting agent, renting out your family home can be stress-free, secure, and financially rewarding.
With the Scottish Government currently applying an 8% additional dwelling tax, paid over and above stamp duty for anyone buying a property here whilst still owning another property anywhere else in the world, renting becomes even more appealing. Often renting is the only option if a family aren’t ready to sell the home they are relocating from, as they simply cannot afford the tax bill of buying another one.
The Opportunity for Homeowners in Edinburgh and Glasgow
If you own a house in Edinburgh or Glasgow with three or more bedrooms, and especially if it includes a garden, a driveway, and is located in a good school catchment area, your home is likely in very high demand for rent.
Letting out your property doesn’t need to be complicated. With a trusted letting agent by your side, you’ll benefit from:
- Comprehensive tenant vetting to ensure your home is well looked after
- Regular inspections and maintenance to protect your asset
- Personalised property management from a dedicated professional
- Market-leading rental valuations based on real-time demand
Perhaps most importantly, you retain ownership and flexibility. If you’re unsure how long you’ll be away, or whether you might want to return to your home in future, letting your property keeps your options open.
Final Thoughts
In both Edinburgh and Glasgow, there is a growing population of families eager to rent family orientated homes, but a shrinking pool of suitable properties available. This creates both a challenge for the cities and a clear opportunity for homeowners.
If you’re considering renting out your home in Edinburgh or Glasgow, now is the time. The demand is real, reliable, and ready. By offering your home to the rental market, you’re not only securing an income and protecting your investment, but you’re also helping a family take their first steps in a new city.