Thinking of becoming a landlord in Edinburgh? New data reveals the postcodes where you could earn the highest rental yields – and EH3 and EH8 are leading the pack.

According to the latest figures from ESPC, covering April to June 2024, these two Edinburgh postcodes are a goldmine for buy-to-let investors.

EH3: A Hit With Professionals

Spanning the trendy New Town and West End, EH3 is a magnet for young professionals, pushing up demand (and rental yields!). One-bedroom flats in this area are particularly lucrative, boasting an impressive average rental yield of 7.6%. Two-bedroom and three-bedroom properties in EH3 also perform well, offering average yields of 6.2% and 6.3% respectively.

EH8: Something for Everyone

From the student hub of Meadowbank to the historic charm of Abbeyhill and Holyrood, EH8 offers a diverse range of properties, attracting a broad mix of renters. This postcode saw one-bedroom flats achieve an average rental yield of 7.1%, while two-bedroom homes reached 6.5%. Larger families or student groups seeking three-bedroom properties in EH8 weren’t left out either, enjoying a healthy average yield of 6.8%.

Other Hotspots to Watch:

• EH11 (Gorgie, Dalry, Polwarth): This up-and-coming area saw a remarkable 7.8% average yield for three-bedroom properties, likely driven by lower property prices and increasing demand.
• EH12 (Corstorphine, Murrayfield, Saughtonhall): This postcode, popular with a wide range of renters, saw two-bedroom properties shine with a strong 6.6% average yield.

Expert Insight:

Nicky Lloyd, head of ESPC Lettings, points to rising rental rates and healthy demand as key factors contributing to these positive figures. He notes that despite recent regulatory changes, the Edinburgh rental market remains strong, with particular demand for one-bedroom and three-bedroom properties. This suggests a promising outlook for landlords looking to invest in the city.