Which area in our community offers the best opportunities for your next property investment?

Our Director of New Business, Ben Alexander, shares his insights on where he believes the next prime investment hotspot for landlords will be.  

The UK lettings market has made a strong start to 2026. This momentum builds on a strong finish to last year. According to our latest Quarterly Insights (LQI) statistics, landlord confidence across the country remains steady, with instructions rising by 2%. Letting activity has also increased by 1%, while average rents have grown by 6%, highlighting the market’s continued resilience and upward trajectory.  

Edinburgh continues to stand out as one of the UK’s most attractive cities for student landlord investment. With several leading universities and a consistently high number of domestic and international students, demand for high-quality student accommodation remains strong year after year.  

Student HMOs in Edinburgh typically achieve average yields of around 7%, making them particularly appealing compared to many other major UK cities. At the same time, Edinburgh has consistently outperformed other regions on property price growth, offering landlords the benefit of both income and long-term capital appreciation.  

Rental values further strengthen the investment case. Rents have nearly doubled over the past 15 years, reflecting sustained demand and an ongoing shortage of suitable accommodation. Tight planning controls and limited housing supply have helped maintain pressure on rents, reducing void periods and improving long-term stability for landlords.  

For investors seeking resilient returns, strong tenant demand and proven growth, Edinburgh remains one of the UK’s most compelling student property markets.  

 "Due to the positive balance of long-term rental growth as well as the stable long term capital appreciation Edinburgh has to offer, it remains a strong market for landlord’s looking to enter the HMO market or expand their portfolio” Ben Alexander – Director of New Business  

Looking ahead, 2026 continues to present compelling opportunities for investors. Well-priced, professionally managed properties are well positioned to deliver strong returns, offering attractive yield potential for both new and experienced student landlords.  

To explore how these opportunities could work for you, get in touch with our expert team for tailored guidance and market insight.

Our Quarterly Insights gives you the guidance to make confident property decisions, backed by local knowledge and expert analysis. Download the full report here or contact our team today.

Source: Lomond Quarterly Insights: Winter Edition Q4 2025 YOY