The latest rental data from Citylets, combined with the most recent house price information from ESPC, shows that there are four postcodes in Edinburgh that offered the best rental yields for buy-to-let investors during the period April-June 2021.
Properties in EH8, spanning Meadowbank, Willowbrae and Abbeyhill, generated strong rental yields during this time. Popular with families, young professionals and students due to their proximity to the city centre, open green spaces and the coast, this postcode was popular for all property types. The average gross rental yield for one-bedroom properties in EH8 was 4.9%, whilst it was 4.8% for two-bedroom properties and 5.8% for three-bedroom properties.
In the neighbourhoods of EH5, including Newhaven, Trinity and Granton, rental yields also performed well; one-bedroom properties in EH5 achieved an average gross rental yield of 5.6% in the second quarter of 2021, while two-bedroom properties produced an average yield of 4.3%.
Properties in EH5 offer residents the opportunity to live close to both city and coast, with a plethora of property styles available, from Georgian terraces to new-build apartments. The imminent extension of Edinburgh’s trams into Newhaven marks this postcode as one to watch in the years to come.
To the south-west of the city centre, rental yields in EH11 also performed strongly, with an average yield of 5.4% for three-bedroom properties in this area. The popular pockets of Dalry, Gorgie, Shandon and Stenhouse offer residents a wide variety of amenities whilst also being close to the city centre and university campuses.
The ever-popular EH3 postcode, which includes New Town, Inverleith and Warriston, also offered strong rental yields during April-June 2021. Located close to Princes Street, while also being positioned well for green space, homes in the prestigious postcodes of EH3 present a good long-term investment option. One-bedroom properties in EH3 achieved an average gross rental yield of 5.4% in the second quarter of 2021, while two-bedroom properties achieved an average yield of 4.2%.
Nicky Lloyd, Head of ESPC Lettings, said: “We are seeing a return to demand for larger properties in areas traditionally popular with students, this is consistent with the pattern that we’re seeing in the top-performing areas for rental yields. These larger properties, in areas close to university campuses and with easy access to the city centre, are proving popular.
"There is also still strong demand for smaller properties in the city centre, and in areas that offer easy access to both city and coastline, such as EH5. As restrictions ease and the city opens up further, we expect to see more of Edinburgh’s famous buzz return to the capital, with the potential for stronger demand across the city’s rental market.”
For more from ESPC, or to view properties currently on the market, visit espc.com.