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 January-March 2024.

eh5

EH5: Trinity & Inverleith

Properties in the EH5 district performed well, with increasing numbers of young professionals seeking homes in elegant neighbourhoods including Trinity and Inverleith, as well as traditionally more affordable areas such as Granton, Pilton, Crewe and Newhaven. With easy access to the coastline, and excellent transport links (including the tram extension), this area has experienced notable demand from renters who hope to call this locale home. One-bedroom properties in EH5 achieved an average rental yield of 5.7% during the opening quarter of 2024, while two-bedroom properties attained 5% on average.

EH9: Newington

Homes in the EH9 postcode also performed strongly during the first months of 2024, with properties here proving popular with a range of renters. Located just south of the city centre, EH9 covers Newington, which is traditionally popular with students and families alike, as well as the well-heeled neighbourhoods of Marchmont, Blackford and the Grange. One-bedroom homes in EH9 offered an especially strong rental yield of 6.1% during this period, with two-bedroom properties achieving 4.4% and three-beds offering 4.3%.

eh11

EH11: Gorgie & Dalry

The postcode area of EH11 offered very healthy rental yields across the board during the opening quarter of this year, likely due to the combination of lower average property prices and increasing renter demand. West of the city centre, EH11 includes up-and-coming areas such as Gorgie, Dalry and Polwarth, alongside the established and sought-after neighbourhoods of Shandon and Slateford, meaning this postcode appeals to everyone from students and young professionals to families. In this postcode, one-bedroom and two-bedroom properties both offered rental yields of 5.4%, however, three-bedroom properties performed exceptionally well, with a yield of 8.4% - the best to be found in Edinburgh during this period.

EH12: Corstorphine & Murrayfield

Homes in the EH12 postcode also performed strongly during the first quarter of 2024, 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, and families, plus it provides excellent local amenities and first-rate transport links. In this postcode, one-bedroom properties performed strongest, with an average gross rental yield of 5.5%, while two-bedroom and three-bedroom homes both provided yields of 5.1%.

Nicky Lloyd, Head of ESPC Lettings, said: “The opening months of 2024 were the calmest Edinburgh has experienced for some time; increases in rental rates were smaller than we’ve seen of late, and the average ‘time to let’ was slower, allowing tenants more opportunities to find their next home. However, despite things being calmer overall, there continued to be incredibly high demand for homes of all sizes, from tenants across a range of life stages.

“One-bedroom properties proved especially in-demand across the board, which is particularly interesting given that the latest Citylets data reveals that the average cost for a one-bed in Edinburgh costs much the same as the Scottish national average rate for a two-bedroom property. This highlights the additional financial pressure on tenants living in Edinburgh versus anywhere else in Scotland. Despite this, demand remains incredibly high, and this latest update on rental yields proves there is much opportunity for would-be landlords thinking of entering the sector.”

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