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EXPERT ADVICE

 The best property postcodes
 for Edinburgh investors  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
 We reveal the top-performing Edinburgh postcodes in terms    like Gorgie and Dalry, as well as established neighbourhoods such as
 of rental yields for the first three months of 2025.  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%.
 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.

                        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
 Properties within the highly sought-after EH3 postcode - covering areas   renters.  It  offers  excellent  amenities  and  transport  links,  making  it
 including New Town and West End - saw strong performance, with   a desirable location for students, young professionals, and families
 a high volume of professionals keen to live in this iconic part of   alike. One-bedroom homes here led the way with a rental yield of
 Edinburgh. With direct access to top-tier amenities, green spaces,   7.1%, followed by two-bed properties at 6.6%. In contrast to the trend
 stunning  architecture,  and  convenient  commuting  options,  EH3   seen in other areas, three-bedroom homes in EH12 generated the
 continues to attract significant interest from tenants eager to be in   lowest yield, averaging 5.4%.
 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%.

          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
 The fashionable EH6 postcode also delivered impressive results,
 attracting a broad spectrum of renters. Home to the highly sought-  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
 after  area  of  Leith,  EH6  benefits  from  strong  local  amenities  and   Street,  EH1  offers  unrivalled  access to the   competitive market.”
 improved connectivity thanks to the tram extension. One-bedroom   beating heart of the Capital.
 properties achieved yields of 6.3%, while two-bed homes averaged
 5.7%. Interestingly,  three-bedroom properties outperformed both,   “In a shift from the long-standing trend of
 with a notable yield of 6.7%, indicating growing interest from families.  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
 EH8 also proved to be a reliable choice for investors in early 2025.   changes to rent controls we’re seeing   rental homes is still high, the emergence of
 Including areas such as Newington, Duddingston, Abbeyhill, and   landlords being tempted back to the market.   more families seeking homes in desirable
 Willowbrae, EH8 appeals to a mix of tenants, ranging from students   Tenant demand remains strong, although   Edinburgh areas is an interesting change to
 to professionals and families. Rental yields for one-bedroom homes   higher-end properties are taking longer to   the rental landscape of the capital.”
 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%.
           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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