Scotland: Short-Term vs Long-Term Rental Returns

Scotland has attractive rental yields, but a mandatory short-term let licensing scheme since 2022 adds cost and complexity. We compare short-term and long-term returns across all Scottish local authorities, factoring in licensing costs and Edinburgh's strict controls.

Data last updated: March 2026

What Could You Earn?

Estimated gross income for a typical 3-bedroom house in Scotland, based on median values. These are starting points. In the dashboard you can adjust everything to match your own property and circumstances.

Typical property price
£170K
Long-term rental income
£1,034/mo
before expenses
Short-term rental income
£3,437/mo
before expenses
Short-term earns roughly
£2,403/mo more
before expenses and regulations

Key Takeaways

  • Short-term rental outperforms long-term in most of Scotland, but the mandatory licensing scheme and management overhead narrow the gap compared to England.
  • Edinburgh has the highest nightly rates but is a designated Short-Term Let Control Area. Planning permission is required on top of licensing, making short-term rental difficult for investment properties.
  • The Central Belt (Glasgow, Lanarkshire) offers the best balance: strong short-term premiums with relatively affordable entry prices and standard licensing only.
Interested in a specific area?
See the full short-term vs long-term comparison with adjustable assumptions.
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How Short-Term and Long-Term Compare by Area

Estimated monthly income for a 3-bedroom house in each area, before expenses. Click any area to see the full breakdown in the dashboard.

City / areaPriceLong-term /monthShort-term /monthShort-term rules
Edinburgh
£265K£1,864£6,843LowView details →
Glasgow
£179K£1,263£4,357LowView details →
Aberdeen
£166K£1,181£2,725LowView details →
Perth
£171K£1,076£3,459LowView details →
Fife
£177K£992£3,415LowView details →
Stirling
£168K£968£3,626LowView details →
Inverness
£165K£957£3,271LowView details →
Dundee
£142K£887£2,696LowView details →

All figures are estimates based on median values for a 3-bedroom house in each area. Individual properties will vary. Use the dashboard to adjust assumptions to your own situation.

Compare Any Location

The dashboard covers 8 local authorities across Scotland. Search for any area and adjust property price, rent, nightly rate, occupancy, mortgage rate, and expenses to match your investment.

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