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.

The latest rental data from Citylets, combined with the most recent house price information from ESPC, shows that there were four postcodes in Edinburgh that offered the best rental yields for buy-to-let investors during October-December 2024.

EH1: Edinburgh Old Town

The super central postcode of EH1 once again generated a strong rental yield for investors. Properties in this area are seeing significant demand from people looking to live in the heart of the capital. During Q4 2024, one-bedroom properties in EH1 achieved an average rental yield of 6%, while two-bedroom homes offered a robust 6.4%.

EH5: Trinity & Granton

Perched on the northern shoreline of the city and offering coastal charm with great links to the city centre, the EH5 postcode continues to present fantastic opportunity for investors. The area includes popular places to live such as Trinity which has good schooling options, a diverse array of properties and plenty of green spaces and Granton which offers great affordability and easy access to the city centre. During Q4 2024, one-bedroom properties in EH5 enjoyed an average rental yield of 7%, with two-bedroom properties also offering a good rental yield of 6.9%.

EH8: Meadowbank & Newington

EH8 is another popular area of Edinburgh which stretches from Arthur’s Seat to areas including Meadowbank, Willowbrae, Abbeyhill, Holyrood, Newington and the Old Town. Offering a variety of property types to suit students, young professionals and families, this area benefits from excellent amenities and is close to the city centre. One-bedroom and two-bedroom properties remain highly sought after, with both delivering an average rental yield of 6.6%. Meanwhile, three-bedroom homes, popular among families, achieved an average yield of 6.2%.

EH11: Gorgie & Slateford

The EH11 postcode area returned particularly good rental yields which are driven by a combination of relatively low property prices and rising demand from renters. Located west of Edinburgh’s city centre, EH11 includes areas Gorgie, Dalry, Polwarth, Shandon and Slateford, and appeals to a range of renters, including students, young professionals, and families. In this area, one-bedroom and two-bedroom properties delivered rental yields of 6.2% and 7%, respectively. Notably, three-bedroom properties excelled with a significant yield of 7.7%, the second highest in the city during this timeframe.

EH12: Corstorphine & Murrayfield

During Q4 2024, EH12 postcode, which includes areas such as Corstorphine, Murrayfield, and Saughtonhall, demonstrated a strong performance. The area offers excellent local amenities and great transport connections, along with good schooling options. Average rental yields in the area were impressive: one-bedroom properties excelled with 8%, the highest in Edinburgh during Q4 of 2024, while two-bedroom properties and three-bedroom properties both delivered an average yield of 6.1%.

Nicky Lloyd, Head of ESPC Lettings, said: “The final quarter of 2024 was interesting in that average rental rates fell slightly compared with Q3. The average time to let was slightly slower than the previous quarter, giving tenants a little more time to find their next home. Despite this, demand remains strong in the capital. However, with the announcement in early December regarding the immediate increase of Additional Dwelling Supplement from six percent to eight percent, prospective landlords could be forced to change their minds about entering the private rental sector in 2025”.

“Once again, one-bed-room properties performed very well during the period of October-December 2024, achieving an average rental yield of 6.4%, highlighting continued demand from young professionals and students searching for a home in Edinburgh.

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 by emailing us at landlord@espc.com or by calling 0131 253 2847.