The best property postcodes for Edinburgh investors
Using the latest rental data from Citylets and house price information from ESPC, Head of Lettings Nicky Lloyd shares some of the best areas in Edinburgh for buy-to-let property investment.
If you’re considering purchasing a buy-to-let property, location is one the most important factors to consider. Whilst your budget may dictate where and what type of property you purchase, the location will dictate the type of tenant you're likely to attract, how quickly the property is likely to rent and the yield that can be achieved.
Understanding the kind of yield your property can expect is key to making a great investment – so, combining the latest rental data from Citylets with ESPC’s house price information, we can reveal the six postcodes that provided the strongest rental yields during the final quarter of 2023.
EH1: Edinburgh City Centre
Properties in the city centre performed especially well, with the postcode area of EH1 reporting strong figures. Spanning parts of the Old Town and New Town, along with the city centre itself, EH1 is ideal for attracting young professionals who want to live in the very heart of the action.
One-bed homes in EH1 offered a rental yield of 6.2%, while two-bedroom properties in EH1 reported an average yield of 6.3%.
EH3: New Town
Properties in the sought-after EH3 district performed especially well, as increasing numbers of young professionals and families alike sought rental properties in the highly desirable New Town. Boasting unbeatable access to the city centre, as well as being close to the tram line and trendy areas such as Stockbridge and Leith, this area has experienced notable demand from renters who hope to call this pocket of the Capital home.
One-bedroom properties in EH3 achieved an average rental yield of 6.9% during October-December 2023, while two-bedroom properties offered a yield of 6.4%. Larger three-bedroom homes in the New Town had an average rental yield of 6.6%.
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EH6: Leith
Homes in the trendy EH6 postcode also performed strongly, with properties here proving popular with a range of renters. Covering ever-popular Leith, EH6 appeals to a broad range of tenants with its amenities, as well as its better-than-ever transport links thanks to the tram extension.
One-beds in EH6 offered a rental yield of 6.3%, while two-beds and three-beds in the EH6 area both offered average yields of 6.1%.
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EH8: Newington and Abbeyhill
EH8 was also a solid option for investors, as this postcode reported good results during the last quarter of 2023. Spanning areas such as Newington, Duddingston, Abbeyhill and Willowbrae, this area appeals to tenants from students to young professionals and families.
One-bedroom properties in EH8 provided a rental yield of 6.5%, while two-bedroom homes in EH8 offered a 6.3% yield during this period.
Search all properties for sale in EH8.
EH12: Corstorphine and Murrayfield
Homes in the EH12 postcode also performed strongly during the last quarter of 2023, with properties here proving popular with a range of renters.
Located to the west of the city centre, and covering neighbourhoods such as Corstorphine, Murrayfield, Hermiston and Saughtonhall, this postcode offers a variety of homes suited to students, young professionals working in the city and families looking for a home close to good schools and green spaces, plus it provides excellent local amenities and first-rate transport links.
In the EH12 postcode, one-bedroom properties provided an average gross rental yield of 6.4%, while two-bedroom homes had a yield of 6.7%.
Search all properties for sale in EH12.
EH14: Craiglockhart and Currie
The postcode area of EH14 offers an ideal investment opportunity for landlords, with this part of the city continuing to be hugely popular with families and young professionals alike. Spanning areas such as Craiglockhart, Baberton, Slateford, Currie and Balerno, EH14 offers the chance to enjoy a more peaceful way of living, with the city centre still close at hand, and a reputation for great amenities, schooling and transport links.
One-bedroom homes in EH14 offered a rental yield of 6.9% during this period, while two-bedroom homes in the EH14 area provided an average yield of 6.2%.
Search all properties for sale in EH14.
Special mention: EH15
A special mention should be made for one-bedroom properties in the EH15 postcode area, which offered the highest rental yield in Edinburgh, at 7.1% on average. EH15 covers Portobello, Brunstane, Duddingston and Joppa: well-known for being among the most popular places to live in the Capital.
Search all properties for sale in EH15.
Contact us
If you are a landlord who is looking for an agent to help manage your rental properties, or you're a tenant looking for a new rental home, don't hesitate to contact Nicky Lloyd, our head of lettings, who would be delighted to help. Get in touch on landlord@espc.com, 0131 253 2847 or using the contact form below.