ESPC has revealed that EH1, EH12, EH5, EH8 and EH11 were the top postcodes in Edinburgh for rental yields during the last quarter of 2024.
According to the data from Citylets and ESPC, these areas stood out for buy-to-let investors.
In EH1, covering the Old Town and Princes Street, one-bedroom properties achieved an average rental yield of 6%, while two-bedroom homes reported a yield of 6.4%.
The area remains in high demand due to its central location.
The EH12 postcode, covering areas such as Corstorphine and Murrayfield, showed impressive yields as well.
One-bedroom properties achieved 8%, the highest in the city for Q4, while two-bedroom and three-bedroom homes reported yields of 6.1%.
EH5, which includes Trinity and Granton, showed strong opportunities for investors.
One-bedroom properties yielded an average of 7%, and two-bedroom homes provided a yield of 6.9%.
The area is popular with young professionals and families, benefitting from good transport links and growing investment.
EH8 also performed well, with both one-bedroom and two-bedroom properties delivering yields of 6.6%.
Three-bedroom family homes achieved a yield of 6.2%.
This area attracts a variety of renters due to its proximity to the city centre and local amenities.
In the EH11 postcode, which includes Gorgie and Dalry, one-bedroom properties yielded 6.2%, two-bedroom homes reached 7%, and three-bedroom properties excelled with a yield of 7.7%.
The lower property prices and increasing demand have contributed to the strong rental performance here.
Nicky Lloyd, head of ESPC Lettings, said: “The final quarter of 2024 was interesting in that average rental rates fell slightly compared with Q3.
“The average time to let was slightly slower than the previous quarter, giving tenants a little more time to find their next home.
“Despite this, demand remains strong in the capital.
Lloyd added: “However, with the announcement in early December regarding the immediate increase of Additional Dwelling Supplement from six percent to eight percent, prospective landlords could be forced to change their minds about entering the private rental sector in 2025”.
“Once again, one-bedroom properties performed very well during the period of October-December 2024, achieving an average rental yield of 6.4%, highlighting continued demand from young professionals and students searching for a home in Edinburgh.”
