Edinburgh-based property portal ESPC has unveiled the top-performing postcodes for rental yields in Edinburgh for the first quarter of 2024.
Using the latest rental data from Citylets and current house price information from ESPC, the analysis highlights four Edinburgh postcodes that delivered the highest rental yields for buy-to-let investors from January to March 2024.
Nicky Lloyd, Head of ESPC Lettings
The EH5 district, which includes Trinity, Inverleith, Granton, Pilton, Crewe, and Newhaven, saw impressive performance. These areas are popular with young professionals for their elegant charm, affordability, and excellent transport links, including the new tram extension. One-bedroom properties in EH5 achieved an average rental yield of 5.7%, while two-bedroom properties yielded 5%.
The EH9 postcode, covering Newington, Marchmont, Blackford, and the Grange, also performed well. Located just south of the city centre, this area attracts students and families. One-bedroom properties in EH9 offered a strong rental yield of 6.1%, with two-bedroom and three-bedroom properties yielding 4.4% and 4.3%, respectively.
EH11, which includes Gorgie, Dalry, Polwarth, Shandon, and Slateford, demonstrated robust rental yields due to lower average property prices and increasing renter demand. This diverse area appeals to students, young professionals, and families. In EH11, one-bedroom and two-bedroom properties both offered rental yields of 5.4%, with three-bedroom properties performing exceptionally well at 8.4%—the highest in Edinburgh for this period.
The EH12 postcode, covering Corstorphine, Murrayfield, Hermiston, and Saughtonhall, also performed strongly. This area is popular with a wide range of renters due to its excellent local amenities and transport links. One-bedroom properties in EH12 achieved an average gross rental yield of 5.5%, while two-bedroom and three-bedroom homes both provided yields of 5.1%.
Great opportunity for landlords entering the sector
Nicky Lloyd, Head of ESPC Lettings, said: “The opening months of 2024 were the calmest Edinburgh has experienced for some time; increases in rental rates were smaller than we’ve seen of late, and the average ‘time to let’ was slower, allowing tenants more opportunities to find their next home. However, despite things being calmer overall, there continued to be incredibly high demand for homes of all sizes, from tenants across a range of life stages.
“One-bedroom properties proved especially in-demand across the board, which is particularly interesting given that the latest Citylets data reveals that the average cost for a one-bed in Edinburgh costs much the same as the Scottish national average rate for a two-bedroom property. This highlights the additional financial pressure on tenants living in Edinburgh versus anywhere else in Scotland. Despite this, demand remains incredibly high, and this latest update on rental yields proves there is much opportunity for would-be landlords thinking of entering the sector.”
This data highlights the lucrative potential for buy-to-let investments in Edinburgh’s rental market, particularly in the identified high-yield postcodes.
