Edinburgh-based property portal ESPC has revealed the top-performing postcodes for rental yields in Edinburgh for the third quarter of 2024.
The data, sourced from Citylets, shows that five postcodes stand out for buy-to-let investors during July to September 2024.
Properties in the prime EH1 postcode, covering the Old Town and Princes Street, showed strong performance, with one-bedroom homes averaging a rental yield of 6.4%, two-bedroom homes at 6.9%, and three-bedroom homes at 6.7%.
The EH3 postcode, spanning the New Town and West End, also performed well, particularly with one-bedroom properties generating a yield of 7.5%.
Two-bedroom homes provided a 6.1% yield, while three-bedroom properties averaged 6.3%.
The EH4 postcode, which includes Comely Bank, Cramond, and Davidsons Mains, had one-bedroom properties yielding 6.4% and two-bedroom properties at 7%. Three-bedroom homes in this area yielded 5.7%.
The EH5 postcode, covering Trinity and Granton, showed promising returns, with one-bedroom homes averaging a rental yield of 7.4% and two-bedroom properties at 6.8%.
Homes in the EH8 district had strong yields, with one-bedroom properties earning 7.2%, two-bedroom homes at 7.4%, and three-bedroom properties bringing in an average yield of 7.5%.
Nicky Lloyd, head of ESPC Lettings, said: “We started to see the rental market settle into a new flow during the third quarter of the year, after a few months of the new legislation being in place that allows landlords to increase rents in line with open market value.
“Demand for rental property in Edinburgh remains incredibly high, as we’ve seen so many landlords exit the market over the last few years meaning demand continues to heavily outweigh supply – however, it’s always the hope that would-be investors thinking of taking the plunge can be persuaded by these latest figures that there are excellent opportunities for property investment in Edinburgh.”
“One- and two-bedroom properties performed especially well, hinting at exceptionally strong demand from young professionals in a variety of areas – from the very heart of the city centre to up-and-coming neighbourhoods like Granton.”
