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EXPERT ADVICE
The best property postcodes
for Edinburgh investors
We reveal the top-performing Edinburgh postcodes in terms
of rental yields for the first three months of 2025.
he latest rental data from Citylets, combined with the most recent house price
information from ESPC, shows there were five postcodes in Edinburgh that offered
Tthe best rental yields for buy-to-let investors during January-March 2025, and one
additional area that provided the highest yield across the Capital.
Properties within the highly sought-after EH3 postcode - covering areas
including New Town and West End - saw strong performance, with
a high volume of professionals keen to live in this iconic part of
Edinburgh. With direct access to top-tier amenities, green spaces,
stunning architecture, and convenient commuting options, EH3
continues to attract significant interest from tenants eager to be in
the heart of the city. One-bedroom homes here stood out, delivering
an average rental yield of 6.8%. Two-bedroom properties followed with
a 5.6% yield, while three-bedroom homes offered a yield of 5.4%.
The fashionable EH6 postcode also delivered impressive results,
attracting a broad spectrum of renters. Home to the highly sought-
after area of Leith, EH6 benefits from strong local amenities and
improved connectivity thanks to the tram extension. One-bedroom
properties achieved yields of 6.3%, while two-bed homes averaged
5.7%. Interestingly, three-bedroom properties outperformed both,
with a notable yield of 6.7%, indicating growing interest from families.
EH8 also proved to be a reliable choice for investors in early 2025.
Including areas such as Newington, Duddingston, Abbeyhill, and
Willowbrae, EH8 appeals to a mix of tenants, ranging from students
to professionals and families. Rental yields for one-bedroom homes
reached 6.4%, with two-bed properties slightly higher at 6.5%. As in
EH6, three-bedroom homes led the way, producing a yield of 6.8%.
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EH11 showed robust rental performance in the first quarter of the
year, likely influenced by lower property prices and increased tenant
demand. Situated west of the city centre, EH11 spans emerging areas
like Gorgie and Dalry, as well as established neighbourhoods such as
Shandon and Slateford. This mix attracts a diverse tenant base, from
students to families. One- and two-bedroom properties yielded 6.4%
and 6.5%, respectively, while three-bedroom homes stood out with an
average yield of 6.8%.
The EH12 postcode also recorded strong results during Q1 of 2025. Located
to the west of the city centre and including Corstorphine, Murrayfield,
Hermiston, and Saughtonhall, EH12 is popular with a wide range of
renters. It offers excellent amenities and transport links, making it
a desirable location for students, young professionals, and families
alike. One-bedroom homes here led the way with a rental yield of
7.1%, followed by two-bed properties at 6.6%. In contrast to the trend
seen in other areas, three-bedroom homes in EH12 generated the
lowest yield, averaging 5.4%.
And special mention should be made let and one-bedroom furnished properties
for three-bedroom properties in the EH1 are still the highest in demand. There has
postcode area, which offered the highest also been a surge in tenants looking for
rental yield in Edinburgh, at 7.3% on average. new properties because their landlords
are selling, meaning a rapid increase in a
Covering the Old Town and around Princes
Street, EH1 offers unrivalled access to the competitive market.”
beating heart of the Capital.
“In a shift from the long-standing trend of
Nicky Lloyd, Head of ESPC Lettings, said: one- and two-bedroom properties providing
“Investment in the buy-to-let market the highest average rental yields, three-
started slowly in Q1 of 2025, due to the bedroom properties have performed very
announcement of the increase of Additional well during Q1 of 2025. Although demand
Dwelling Supplement (ADS), but with from young professionals and couples for
changes to rent controls we’re seeing rental homes is still high, the emergence of
landlords being tempted back to the market. more families seeking homes in desirable
Tenant demand remains strong, although Edinburgh areas is an interesting change to
higher-end properties are taking longer to the rental landscape of the capital.”
ESPC Lettings is an Edinburgh letting agent. We can help with marketing your rental property and finding the right tenants.
Contact the team on 0131 253 2847 or landlord@espc.com.
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