Leading Edinburgh-based property portal ESPC has revealed the top-performing Edinburgh postcodes in terms of rental yields, for the third quarter 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 July-September 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 6.4% during July-September, while two-bed homes provided a substantial 6.9% yield, and three-beds 6.7%.

Properties in the ever-popular EH3 postcode, spanning the New Town and West End, performed well, with high numbers of professionals especially seeking homes in this iconic part of the city. Offering direct access to the city’s finest amenities and green spaces, alongside beautiful architecture and the likelihood of an easy commute, EH3 has experienced considerable demand from would-be tenants longing to be at the heart of the city’s action. One-bedroom properties in EH3 performed especially well, offering an average rental yield of 7.5% during this time, while two-bedroom properties generated a 6.1% yield, and three-bedroom homes produced an average yield of 6.3%.

The EH4 postcode area, which covers neighbourhoods such as Comely Bank, Cramond, Cammo and Davidsons Mains, was also especially strong during the third quarter of 2024. Located just a short distance from the city centre, these neighbourhoods are particularly popular with families due to access to highly regarded schooling, as well as offering a more tranquil environment for those who want to enjoy a quieter pace of life, with the city still close by. One-bedroom properties in EH4 generated an average rental yield of 6.4% during this period, while two-bedroom properties offered a yield of 7% on average. Three-bedroom properties offered an average rental yield of 5.7% during this time, impacted by the higher property prices to purchase larger homes in this sought-after part of the city.

Properties in EH5, which includes the increasingly popular Trinity and Granton, offered an excellent opportunity for investors during the third quarter. Hugging 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 – which has only improved following the tram extension last year. Granton has been feeling the impact of significant investment in the area, and with the trams now nearby, has rapidly become more appealing than ever with young professionals. One-bedroom properties in this postcode area offered an average rental yield of 7.4% during July-September, while two-bedroom properties also did well, with a yield of 6.8%.

Homes in the EH8 district were also strong performers during 2024’s third 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-bedroom properties, once again, were especially popular, generating an average rental yield of 7.2%, while two-bed homes offered an especially healthy yield of 7.4%. Ideal for families or students, three-bedroom homes were also in high demand, with an average yield of 7.5% for this property type – the joint-highest yield currently available in the market, together with one-bedroom homes in EH3, showing just how in-demand this locale has become with particular demographics.

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.”

For more from ESPC, or to view properties currently on the market, visit espc.com