Scotland’s world-renowned landscapes, rich history, and vibrant cultural events continue to attract millions of visitors each year. This strong tourism sector is having a direct impact on the short-term lettings market, driving demand for rental properties, influencing pricing, and creating opportunities for landlords and investors. 

Tourism driving short-term rental demand 

Scotland welcomed over 16 million overnight visitors in 2023, with numbers expected to grow further in 2025. Events like the Edinburgh Festival Fringe, Highland Games, and major sporting events bring an influx of tourists, leading to increased demand for holiday lets in key locations. According to Rightmove, short-term rental enquiries in Scotland’s most popular tourist areas have risen by 28% year-on-year. 

Cities such as Edinburgh, Glasgow, and Inverness are prime locations for short-term rentals due to their high visitor numbers. However, rural and coastal destinations, including the Isle of Skye, the Scottish Borders, and the North Coast 500 route, are also seeing a surge in demand, offering strong rental returns for property owners. 

How tourism affects rental prices and availability 

The popularity of short-term lets has contributed to rising rental prices, particularly in high-demand areas. Zoopla reports that average rental prices in Edinburgh’s city centre have increased by 12% over the past year, largely driven by the short-term rental market. While this benefits landlords, it has also led to tighter availability of long-term rental properties in certain areas. 

To balance the needs of both landlords and residents, the Scottish Government has introduced short-term let licensing requirements to regulate the sector. These measures ensure responsible letting while still allowing landlords to benefit from Scotland’s thriving tourism market. 

Investment opportunities in short-term rentals 

For property investors, Scotland’s tourism market presents significant opportunities: 

• Consistently high occupancy rates – Popular tourist destinations experience year-round demand, particularly in heritage-rich cities and scenic rural locations. 

• Flexible rental strategies – Landlords can maximise earnings by adapting to seasonal tourism trends, offering both short-term holiday lets and longer-term stays during quieter months. 

• Strong capital appreciation – Property values in high-demand tourist areas continue to rise, providing long-term investment potential. 

Scotland’s tourism sector remains a key driver of the short-term rental market, offering profitable opportunities for landlords and investors. With responsible regulation in place and sustained visitor demand, short-term lets will continue to play a vital role in Scotland’s property landscape. 

Maximise your rental potential by tapping into Scotland’s thriving tourism market