EH1 and EH3 are among the best postcodes for rental property in Edinburgh, according to new findings from ESPC, the Edinburgh-based property portal.
The latest rental data from Citylets, combined with the most recent house price information from ESPC, shows that there were several postcodes in Edinburgh that offered the best rental yields for buy-to-let investors during the three months of October to December 2023.
Properties in the city centre performed especially well, with the postcode areas of EH1 and EH3 reporting strong figures.
Properties in EH1 did well, with one-bed homes offering a rental yield of 6.2%, while two-bedroom properties reported an average yield of 6.3%.
Similarly, homes in the sought-after EH3 district offered strong results, as increasing numbers of young professionals and families alike sought rental properties in the desirable New Town.
One-bedroom properties in EH3 achieved an average rental yield of 6.9% during October to December 2023, while two-bedroom properties offered a yield of 6.4%.
Larger three-bedroom homes had an average rental yield of 6.6%.
Homes in the trendy EH6 postcode also performed strongly, with properties here proving popular with a range of renters.
Covering ever-popular Leith, EH6 appeals to a broad range of tenants with its amenities, as well as its better-than-ever transport links thanks to the tram extension.
One-beds in EH6 offered a rental yield of 6.3%, while two-beds and three-beds in the area both offered average yields of 6.1%.
EH8 was also a solid option for investors, as this postcode reported good results during the last quarter of 2023.
Spanning areas such as Newington, Duddingston, Abbeyhill and Willowbrae, this area appeals to tenants from students to young professionals and families.
One-bedroom properties in this location provided a rental yield of 6.5%, while two-bedroom homes offered a 6.3% yield during this period.
Homes in the EH12 postcode performed effectively during the final months of 2023, with properties here proving popular with a range of renters. Located to the west of the city centre, and covering neighbourhoods such as Corstorphine, Murrayfield, Hermiston and Saughtonhall, this postcode offers a variety of homes suited to students, young professionals and families.
In this postcode, one-bedroom properties offered an average gross rental yield of 6.4%, while two-bedroom homes had a yield of 6.7%.
Nicky Lloyd, head of ESPC Lettings, said: “Throughout 2023, Edinburgh’s rental market continued to feel the effects of staggering levels of demand, with many more renters looking for properties than were available on the market.
“We did start to see a return to seasonal patterns, with the market feeling slightly quieter during the last months of 2023, but rents continued to rise and demand did not tail off.
“Properties of all sizes were high in demand, but one- and two-bedroom properties were especially popular during this time, suggesting a large number of students and young professionals were in the market for a rental property.
“Average rents are at an all-time high in Edinburgh, and competition continues to be fierce for quality homes, in many areas across the city.”
