How to invest in buy-to-let property in EH8
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: EH8, spanning areas such as Newington, Abbeyhill, Meadowbank and Duddingston.
Investing in EH8
EH8 is a postcode area that covers a blend of renowned neighbourhoods in Edinburgh, alongside some up-and-coming locations, which makes it a great place to invest in buy-to-let property.
The postcode area of EH8 spans areas popular with students and young professionals, such as Newington and Abbeyhill, as well as areas that appeal to more of the family market, including Meadowbank, Willowbrae and Duddingston.
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 transport links and amenities nearby, although it’s very easy to walk into the city centre from this postcode.
Rental yields in EH8
According to the latest Citylets data (Q4 2023), properties in EH8 are generating solid rental yields.
One-bedroom properties in EH8 generated a 6.5% yield on average, while two-bedroom properties in EH8 offered a yield of 6.3%.
Reasons to invest in EH8
There are many good reasons to invest in the EH8 area, and we’ve highlighted just a few below:
- EH8 is an area that offers fantastic proximity to the city centre, with some areas becoming more popular with a variety of tenants.
- Parts of the EH8 area, such as Newington, Meadowbank and Abbeyhill, are especially popular with young professionals and students, with a high density of flats and apartments to choose from and excellent amenities very close by.
- However, EH8 also appeals to family tenants as it spans family-friendly locations like Willowbrae and Duddingston, offering you options regarding the kind of property you want to invest in and the kind of tenants you hope to attract.
- Due to the variety available, EH8 appeals to a broad range of tenants across the budget spectrum, so there are opportunities whether you are looking at the higher or lower end of the market.
Cons of investing in EH8
For balance, there are some points to consider before buying a property in EH8:
- EH8 is largely made up of flats and tenement properties, and the ongoing maintenance for older flats and tenement properties is generally higher in cost than buying a newer home.
- Houses in this postcode area are generally in shorter supply and therefore can be more competitive to purchase.
- If you are planning to purchase in one of the pockets of EH8 which can traditionally have broader market appeal or command higher rental rates, such as Newington or Duddingston, 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 EH8
According to the ESPC House Price data (for October-December 2023), the average price for property in EH8 is £263,079.
A one-bedroom property in EH8 has an average price of £182,822, while a two-bed in EH8 currently costs £250,327. Three-bedroom homes in EH8 cost, on average, £362,391.
Buyers bid an average of 102.2% of the Home Report valuation to successfully purchase a property in EH8.
Properties in EH8 take a median time of 25 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, investing in EH11 and investing in EH12.