Central Edinburgh is very touristy in the summer, but it's pretty easy to live somewhere that is barely touched by that and the festival. We live about 15 minutes south of the city centre by bus and work about 25 minutes further south in Midlothian, and the festival only affects us when trying to get into town. I've lived in Scotland my entire 13 years in Scotland, and in Edinburgh the last year and a half, and I wouldn't even consider living in another part of the UK.