Interested in purchasing a buy-to-let property in Edinburgh but unsure which area would be best to buy in? While areas such as the West End and Leith are popular with tenants, the competition for homes in these areas means property prices can be high, which may prevent you achieving a strong yield on a rental property.

Based on the latest rental data from Citylets and house price information from ESPC, we’ve identified the best areas for buy-to-let properties in Edinburgh based on rental yields, to help you maximise income on a buy-to-let investment.

The Old Town

EH17 – Gilmerton, Moredun and Mortonhall

Easy access to the City Bypass makes living in the EH17 area of the city an attractive prospect for those who need to commute to other parts of the city or further afield on a regular basis.

Two bedroom properties in EH17 achieved an average gross rental yield of 6.1% in the fourth quarter of 2020.

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EH16 – Liberton and the surrounding areas

Covering the village of Liberton, and the nearby areas of Craigmillar, Peffermill and Niddrie, EH16 is a good place to purchase a buy-to-let in Edinburgh. There have also been many new build developments in this district which have proved popular with tenants, but house prices remain competitive. 

Between October and December 2020, the average rental yield for one bedroom properties in EH16 was 5.5% while it was 5.2% for two bedroom properties and 5.4% for three bedroom properties.

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EH8 – Newington and Canongate

An ideal location for University of Edinburgh students, Newington and the nearby areas also boasts an array of independent shops and eateries making the EH8 district perfect for all types of tenants. It’s also close to the green spaces of Holyrood Park and the Meadows, perfect for weekend walks.

In the last three months of 2020, three bedroom properties in this area achieved an average gross rental yield of 6.1%. Two bedroom properties achieved 5.2% while one bedroom homes achieved 4.8%.

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EH13 – Colinton, Oxgangs and Bonaly

Out to the south-west of the city, EH13 covers the village of Colinton as well as the nearby areas of Oxgangs and Bonaly.

Proximity to the Water of Leith and the Pentlands make it perfect for tenants who enjoy spending time outdoors, while easy access to the City Bypass and bus links make getting around the rest of the city a breeze.

From October to December 2020, the average rental yield for two bedroom properties in the EH13 area was 5.6%.

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EH1 – The Old Town

Right in the centre of Edinburgh, the Old Town boasts a great range of amenities, making it ideal for a wide range of tenants.

In the last quarter of 2020, one bedroom and two bedroom properties in EH1 achieved rental yields of 5.5% and 4.4%, respectively.

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EH12 – Haymarket, Murrayfield, Corstorphine and the Gyle

Stretching from Haymarket out to the Gyle, the EH12 area is popular with tenants due to great tram and bus links which run from the centre of town to the airport, making it ideal for those who need to commute further afield for work.

One bedroom and two bedroom properties in this area achieved average rental yields of 5.5% and 5.2% respectively, in the last three months of 2020.

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Rental yield calculator

Use our handy rental yield calculator to work out what yield you could get on a buy-to-let property. 

ESPC Lettings

ESPC Lettings is a letting agent based in Edinburgh. If you're interested in entering the buy-to-let market, the team can offer expert advice on your buy-to-let properties and portfolio and also provide a fully managed letting service for landlords. Get in touch with the team on landlord@espc.com or 0131 253 2847 to find out more. 

The average gross rental yields in this article are based on rental data from Citylets and house price information from ESPC from October to December 2020.

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