Scotland is relatively expensive when compared to some other European countries, but is lower than many other regions in the UK. Costs are highest in Edinburgh, and in remote areas like Stornoway where supplies are difficult to access.
When travelling, expect to pay about 50 GBP per person for mid-range accommodations and meals. Backpackers using hostels and cooking their own meals can get by on as little as 25 GBP a day, not including transport.
Research, research, and introspection should define your pre-accommodation search. Familiarize yourself with the different areas of Edinburgh and find where you want to live. Read blogs from the area, find official resources, visit the different areas. Ask yourself questions like:
How big a place do you want? A studio? A three room flat?
Where do you want to live? Somewhere close to your work?
What's your price range? What are you comfortable paying?
With answers to these important questions you can begin to think of a specific place.
A flatshare can be an excellent way to save money on your accommodations. It also offers an opportunity to get to know a new city with a local. Shared accommodation in cities ranges from around 300 GBP per month (out of the city center) to 400 GBP or more per month in the city center.
However, an important trait in any roommate situation is having boundaries and a clear understanding of what each roommate requires. To protect yourself against potential problems should the worst happen, try to arrange it so that your roommates co-sign the lease. This makes all the roommates responsible for whatever happens to the property. If the worst was to happen, such as your roommate losing their job and not being able to pay rent, they will be held financially responsible- not you.
Hostels are plentiful across the UK and Scotland is no exception. Most are clustered around the cities, although a few are interspersed in the countryside. Most youth hostels only charge 10 GBP per bed, per night.
The Scottish Youth Hostel Association (SYHA) has a searchable network of Independent Hostels. The SYHA traditionally involved guests performing chores and a ban on alcohol. However, as time marches on many new hostels are abandoning these rules.
Update 8/04/2011
Whether you are a student, an expat, or a business traveller, finding a suitable apartment in Edinburgh isn't always easy. HOMELIKE provides furnished apartments across Europe.
Furnished accommodations are apartments which are fully equipped with everything you need to live in the United Kingdom: kitchen, wi-fi, workspace, washing machines or laundry service... etc. They can be rented over an extended period of time and fully equipped with all necessity.
HOMELIKE customers only need to bring their suitcases when moving to Edinburgh. All apartments include bed linen, towels and daily necessities (soap, shampoo, spices, etc.). In addition they provide workspace, high-speed internet, washing machine or laundry service and final cleaning service, all included in the rental price.