ESPC reveal’s capital’s best rental yields
Scottish property portal ESPC has revealed Edinburgh’s best-performing rental postcodes in the third quarter of 2026.
Using the latest Citylets rental data, alongside ESPC’s latest house price analysis, ESPC has identified five postcodes that performed particularly strongly in terms of rental yields between July and September 2026. However, it says it should be noted that, once again, this was a high-performing period overall, with most categories reporting a yield of 6% or above.
EH8, which includes areas such as Meadowbank and Willowbrae, was the strongest-performing postcode overall. The area is popular with a variety of tenants, likely due to its proximity to the city and the coast, alongside excellent amenities and green spaces, says ESPC. One-bedroom properties produced a yield of 7.4%, two-beds 6.0%, and three-beds 7.8%, the highest in Edinburgh.
The EH5 postcode, covering Granton and Trinity, attracts renters drawn to coastal living and ongoing regeneration. One-bedroom properties achieved an average yield of 7.1% and two-beds 6.8%.
The EH4 district attracted tenants to both its upmarket suburbs – such as Cramond and Barnton – and its more affordable pockets like Drylaw, Pilton and Drumbrae. One-bedroom homes delivered 6.8% yields, two-beds 6.2% and three-beds 6.5%.
EH3, covering the New Town and West End, was fuelled by strong demand from professionals. One-bedroom properties achieved an average yield of 7.0%, two-beds 5.8% and three-beds 6.4%.
Meanwhile, EH9, which includes neighbourhoods such as Marchmont, Grange and Blackford, popular with students, young professionals and families alike, had strong rental yields despite higher property purchase prices. One-bedroom properties achieved a yield of 7.6%, while two-beds hit 5.5% and three-beds 6.1%.
A stabilising market
Nicky Lloyd, head of ESPC Lettings, said: “Over the last quarter, we’ve seen clear signs of the private rental market stabilising after several years of significant fluctuations and high demand. Edinburgh’s annual rental rate increased by 2% overall, compared to the Scottish average of 2.5%.
“However, we do expect demand for rental properties in the capital to remain strong over the months to come, as property shortages combine with higher mortgage rates likely pushing tenants to rent for longer than expected. The indication of this demand to come, along with the excellent yields recorded across the board in the third quarter, should be reassurance for both current landlords and those considering entering the sector.”
