How to invest in buy-to-let property in EH4
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 new 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: EH4, spanning areas such as Stockbridge, Craigleith, Cramond, Blackhall and Davidsons Mains.
Investing in EH4
EH4 is a postcode area that includes some of the most in-demand neighbourhoods in Edinburgh, making it a prime opportunity for rental investment.
EH4 includes areas such as: the stylish city-village of Stockbridge, known for its boutiques, bars and restaurants; the charming waterside village of Cramond; sought-after Blackhall and Barnton, with their proximity to an array of highly-regarded schools, making them a very popular choice for families; and the traditional feel of Davidsons Mains, just three miles from Edinburgh city centre.
The areas covered by EH4 are all a short distance from Edinburgh city centre, making this area very popular with families and commuters in particular.
Rental yields in EH4
According to the latest Citylets data (Q3 2023), properties in EH4 report some of the highest rental yields in Edinburgh, making this location a solid investment for prospective landlords.
One-bedroom homes in EH4 provide an average rental yield of 6.5%, while two-bedroom homes offered 7.2% on average. Three-bedroom properties in EH4 have an average yield of 6%.
Reasons to invest in EH4
There are many good reasons to invest in the EH4 area, and we’ve highlighted just a few below:
- EH4 spans a wide area of Edinburgh that’s very popular with families, but also offers the option to invest in smaller properties to appeal to young professionals too, attracting tenants across a variety of life stages and budgets.
- Due to the popularity of these areas, it’s likely that a property in EH4 will let very quickly, and will attract a large number of prospective tenants, allowing you to choose the right tenant for your property.
- This affluent part of the city attracts a higher rental rate than some other areas, improving the rental yield.
Cons of investing in EH4
For balance, there are some points to consider before buying a property in EH4:
- EH4 is an expensive area to purchase property in, so you will usually need a larger budget.
- EH4 is mainly made up of family homes, such as houses and bungalows, which means your initial outlay will be higher than if you were investing in an area that is more populated with tenements and flats. The ongoing maintenance for a larger property will also be higher in cost.
- There are opportunities to invest in smaller properties in EH4, especially in Stockbridge, however traditionally these properties tend to sell for above their Home Report valuation, which is an expense that can’t be bundled into your mortgage costs.
Property market data for EH4
According to the latest ESPC House Price data (for September-November 2023), the average price for property in EH4 is £321,101.
A one-bedroom property in EH4 has an average price of £231,253, while a two-bed currently costs £239,205. Three-bedroom homes in EH4 cost, on average, £363,017.
Buyers bid an average of 102.2% of the Home Report valuation to successfully purchase a property in EH4.
Properties in EH4 take a median time of 21 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 guide to investing in buy-to-let property in EH3, Edinburgh's New Town.