How to invest in buy-to-let property in EH11
If you’re interested in becoming a landlord in Edinburgh, or in expanding your current Edinburgh property portfolio, knowing the best areas to buy a rental property is key to your success.
Ideally, a rental property will balance a reasonable purchase price with a strong rental yield to give you a good return on your investment. The lettings experts at ESPC Lettings can help advise you on what this looks like, to help ensure that you make a successful investment.
In our series “How to Invest in Buy-to-Let Property” we use the latest Citylets data and ESPC house price information, along with expertise from ESPC Lettings, to reveal the best areas in Edinburgh to invest in rental property.
Next in the series: EH11, spanning areas such as Dalry, Gorgie, Sighthill and Shandon.
Investing in EH11
EH11 is a postcode area that covers some of Edinburgh’s most up-and-coming neighbourhoods, making it an ideal place to invest in buy-to-let property.
The postcode area of EH11 spans areas popular with students and young professionals, such as Dalry and Gorgie, as well as areas that appeal to the family market, such as Shandon and South Gyle, stretching into parts of Murrayfield and Corstorphine.
This postcode area is also very close to Edinburgh city centre, meaning it’s a popular choice with residents who want to take advantage of the excellent tram, train and bus links very nearby.
Rental yields in EH11
According to the latest Citylets data (Q4 2023), properties in EH11 are generating solid rental yields.
One-bedroom properties in EH11 generated a 6.1% yield on average, while two-bedroom properties offered a yield of 6.4%.
Reasons to invest in EH11
There are many good reasons to invest in the EH11 area, and we’ve highlighted just a few below:
- EH11 is an area that offers fantastic proximity to the city centre, but it’s generally more affordable than some other, more well-known postcodes.
- The EH11 area is popular especially with students and young professionals, as it offers a high density of flatted properties.
- EH11 appeals to a broad range of tenants across the spectrum of budgets, so there are options for investors looking for properties at both the higher and lower ends of the costing spectrum.
- EH11 is rapidly becoming increasingly popular, so it’s a prime opportunity to invest in an area that’s on the up.
- Areas such as Gorgie, Dalry, Polwarth and Sighthill offer more affordable property prices than across much of central Edinburgh.
Cons of investing in EH11
For balance, there are some points to consider before buying a property in EH11:
- EH11 is mainly made up of flats and tenement properties, which means that your scope is more limited to smaller properties and potentially shorter-term tenants, than if you were hoping to invest in a house or a larger, family property.
- The ongoing maintenance for older flats and tenement properties is generally higher in cost than buying a newer home.
- If you are planning to purchase in one of the pockets of EH11 which can traditionally have broader market appeal or command higher rental rates, such as Shandon or Merchiston, these areas are generally more expensive and more rarely available than the up-and-coming areas the postcode has to offer.
Property market data for EH11
According to the latest ESPC House Price data (for October-December 2023), the average price for property in EH11 is £226,147.
A one-bedroom property in EH11 has an average price of £177,087, while a two-bed currently costs £235,860. Three-bedroom homes in EH11 cost, on average, £316,218.
Buyers bid an average of 102.1% of the Home Report valuation to successfully purchase a property in EH11.
Properties in EH11 take a median time of 23 days to go under offer.
Check out the latest ESPC House Price Report to keep up-to-date with the local property market.
Find out more
Are you ready to start your property investment journey?
Property investment should be taken as a long-term decision, so it’s very important that you consider all relevant factors before proceeding with a purchase. Take advice from the expert mortgage advisers at ESPC Mortgages to make sure you understand the financial obligations of a buy-to-let property, and speak to the ESPC Lettings team to find out everything you need to know about letting a property in Edinburgh, to prepare you to take the plunge into property investment.
Check out our guides to investing in EH3, investing in EH4 and investing in EH12.