Investment Guide to one of UK’s lettings hotspots

Investment Guide to one of UK’s lettings hotspots


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Edinburgh-based property portal ESPC has revealed the top-performing Edinburgh postcodes in terms of rental yields, for the final three months of 2024. 

The latest rental data from Citylets, combined with the most recent house price information from ESPC, shows that there were five postcodes in Edinburgh that offered the best rental yields for buy-to-let investors during October-December 2024.

Homes in the heart of the city, in the prime EH1 postcode (covering the Old Town and around Princes Street), generated a very strong rental yield for investors. Offering unbeatable access to everything that makes Edinburgh so famous, properties in this area have experienced considerable demand from prospective tenants. One-bedroom properties in EH1 offered an average rental yield of 6% during October-December, while two-bed homes provided a substantial 6.4% yield.

Properties in EH5, which includes the increasingly popular Trinity and Granton, offered an excellent opportunity for investors during the third quarter. On the northern coast of the city, elegant Trinity has long been popular with young professionals and families due to its good schooling, plentiful green spaces and easy access to the city with excellent bus and tram links. Granton has been feeling the impact of significant investment in the area and has rapidly become more appealing than ever with young professionals. One-bedroom properties in this postcode area offered an average rental yield of 7% during October-December, while two-bedroom properties also did well, with a yield of 6.9%.

Homes in the EH8 district were also strong performers during 2024’s fourth quarter, with properties here in high demand across a range of renters. Covering areas including Meadowbank, Willowbrae, Abbeyhill, Holyrood and stretching into Newington and the Old Town, EH8 offers a broad range of properties to suit renters from students and young professionals to families, in areas incredibly close to the city centre and excellent local amenities. One- and two-bedroom properties were especially sought-after, with both delivering average rental yields of 6.6%, while three-bedroom family homes reported an average yield of 6.2%.

The EH11 postcode area returned particularly good rental yields which are driven by a combination of relatively low property prices and rising demand from renters. Located west of Edinburgh’s city centre, EH11 includes areas Gorgie, Dalry, Polwarth, Shandon and Slateford and appeals to a range of renters, including students, young professionals, and families. In this area, one-bedroom and two-bedroom properties delivered rental yields of 6.2% and 7% respectively. Notably, three-bedroom properties excelled with a significant yield of 7.7%, the second highest in the city during this timeframe.

During Q4 2024, the EH12 postcode, which includes areas such as Corstorphine, Murrayfield, and Saughtonhall, demonstrated a strong performance. The area offers excellent local amenities and great transport connections, along with good schooling options. Average rental yields in the area were impressive: one-bedroom properties excelled with 8%, the highest in Edinburgh during Q4 of 2024, while two-bedroom properties and three-bedroom properties both delivered an average yield of 6.1%.

Nicky Lloyd, Head of ESPC Lettings, says: “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. 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.”

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