Key Takeaways
- Edinburgh ranked as the UK’s top short-term rental market for 2026, according to a new study by Uncommon Deal Research
- The report also pointed to Manchester and Liverpool as strong options for investors
- Scotland requires short-term rental operators to hold a license, and Edinburgh’s rules have pushed some hosts out since the requirements took effect
Edinburgh is heading into 2026 as the UK’s top short-term rental market, thanks to a new study.
According to data from UncommonDeal Research, Scotland ranked No. 1 overall due to its strong rental performance and traveler demand.
Cambridge came in second, driven by steady demand from universities, research institutions, corporate travelers, and international visitors. Bath rounded out the top three, helped by strong tourism demand and higher nightly rates.
The report also pointed to Manchester and Liverpool as strong options for investors focused on affordability and cash-on-cash returns. Those cities may not bring in the same headline revenue as some southern UK markets, but lower purchase prices can make the overall return profile more attractive.
To calculate the rankings, the study considered the UK’s short-term rental markets by weighing occupancy, average daily rates, revenue potential, tourism demand, business travel, affordability, and local regulations.
What Edinburgh’s No. 1 short-term rental ranking means for UK investors
For investors, the ranking puts Edinburgh near the top of the UK’s short-term rental watchlist.
It’s not a surprising choice, as the city has a lot working in its favor.
The Edinburgh Festival Fringe fills rooms in August, historic tourism keeps visitors coming most of the year, and the city’s role as the UK’s second-largest financial center adds business travel to the demand mix.
That matters because Edinburgh is not just a summer story.
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Unlike purely seasonal markets, the city can draw guests during slower months, which gives operators more room to make the numbers work across the full year.
But Edinburgh is not an easy market to enter.
Scotland requires short-term rental operators to hold a license, and Edinburgh’s rules have pushed some hosts out since the requirements took effect.
That has added friction for new investors, who need to account for council registration, licensing requirements and fit-and-proper-person checks before projecting revenue.
Still, tighter rules can cut both ways.
For compliant operators who stay in the market, reduced supply could help support nightly rates if traveler demand holds. That is why Edinburgh’s ranking matters heading into 2026.
The takeaway: Edinburgh remains one of the UK’s strongest short-term rental markets, but it is not a casual plug-and-play investment. The opportunity is real. So is the regulation.
