The best yields for Edinburgh rental properties in January to March 2025 were in EH3, EH6, EH8, EH11, EH12 and EH1, research from ESPC found.
One-bedroom homes in EH3, covering New Town and West End, brought an average yield of 6.8%.
Two-bedroom properties followed at 5.6%, and three-bedroom homes gave 5.4%.
In EH6, which includes Leith, one-bedroom homes had a yield of 6.3%, two-bedroom homes had 5.7%, and three-bedroom properties performed better at 6.7%.
EH8, which covers Newington, Duddingston, Abbeyhill and Willowbrae, saw one-bedroom homes with a yield of 6.4%.
Two-bedroom homes had 6.5%, and three-bedroom properties delivered 6.8%.
In EH11, which includes Gorgie, Dalry, Shandon and Slateford, one-bedroom and two-bedroom homes both saw yields of 6.4% and 6.5%, while three-bedroom homes were at 6.8%.
Meanwhile, EH12, which covers Corstorphine, Murrayfield, Hermiston and Saughtonhall, saw one-bedroom homes yield 7.1%.
Two-bedroom homes followed at 6.6%, and three-bedroom homes saw 5.4%.
Three-bedroom homes in the EH1 postcode, covering the Old Town and Princes Street, had the highest average yield in Edinburgh at 7.3%.
Nicky Lloyd, head of ESPC lettings, said: “Investment in the buy-to-let market started slowly in Q1 of 2025, due to the announcement of the increase of ADS, but with changes to rent controls we’re seeing landlords being tempted back to the market.
“Tenant demand remains strong, although higher-end properties are taking longer to let and one-bedroom furnished properties are still the highest in demand.
“There has also been a surge in tenants looking for new properties because their landlords are selling, meaning a rapid increase in a competitive market.”
Lloyd added: “In a shift from the long-standing trend of one- and two-bedroom properties providing the highest average rental yields, three-bedroom properties have performed very well during Q1 of 2025.
“Although demand from young professionals and couples for rental homes is still high, the emergence of more families seeking homes in desirable Edinburgh areas is an interesting change to the rental landscape of the capital.”
