ESPC reveals best postcodes for rental property in Edinburgh

Edinburgh property portal ESPC has unveiled the capital’s strongest-performing rental postcodes for the second quarter of 2025, revealing where buy-to-let investors are seeing the best returns.

Drawing on rental data from Citylets combined with ESPC’s latest house price insights, the figures highlight the areas that achieved the most attractive yields between April and June. Five postcodes in particular stood out for solid investor performance.

EH1

The EH1 postcode, spanning the Old Town and Princes Street, continues to be one of Edinburgh’s most desirable rental hotspots. Tenants are drawn to its historic setting, bustling nightlife, cultural attractions and unbeatable proximity to transport links.

Yields were robust across property types: one-bedroom homes returned 5.8 per cent, two-beds 6.2 per cent and three-beds reached 6.6 per cent. For landlords, the area offers the dual benefit of strong yields and long-term capital appreciation, thanks to its prime location.

EH5

EH5 covers a diverse range of neighbourhoods, from the leafy, sought-after streets of Trinity and Inverleith, to more affordable districts such as Granton, Pilton, Crewe and Newhaven. This mix of property types gives the area wide-ranging appeal, from professionals looking for elegant period homes to younger renters seeking good value.

With its coastal access and nearby green spaces, EH5 is increasingly seen as a practical yet aspirational place to live. Yields reflect this growing demand,

with one-bedroom properties achieving a notable 7.0 per cent, while two-beds returned an average of 5.9 per cent.

EH6

The EH6 postcode, covering Leith and its surrounding areas, continues to build on its reputation as one of Edinburgh’s trendiest and most vibrant neighbourhoods. With its array of bars, restaurants, independent shops and cultural venues, coupled with excellent tram connectivity into the city centre, Leith remains a magnet for tenants across all age groups.

Properties here performed well, with two-bed homes averaging a 6.0 per cent yield, while one-and three-bed properties performed slightly better, both returning 6.1 per cent. The area’s balance of affordability, lifestyle and accessibility makes it a long-standing favourite for both tenants and landlords.

EH8

EH8 spans popular districts such as Meadowbank, Abbeyhill, Holyrood, Newington and Willowbrae, offering  varied housing stock, from modern flats to traditional family homes. The area appeals to a wide demographic including students at the University of Edinburgh, young professionals seeking quick commutes and families looking for larger homes close to good schools and amenities.

Yields were particularly impressive: one-beds achieved 6.9 per cent, two-beds 6.7 per cent and three-beds stood out at 8.6 per cent. For investors, EH8 provides both high demand and diverse tenant profiles.

EH11

EH11 delivered some of the capital’s strongest results, thanks in part to its mix of affordable property prices and growing tenant demand. Covering areas west of the city centre, including Gorgie, Dalry and Polwarth, alongside the established and attractive neighbourhoods of Shandon and Slateford, EH11 offers something for everyone, from students and graduates to young families.

Its appeal lies in its combination of strong community feel, improving local amenities and easy access into central Edinburgh. Yields were healthy across the board, with one-beds returning 6.0 per cent and two-beds averaging 6.3 per cent. However, the real standout was three-bedroom properties, which achieved an exceptional 9.3 per cent yield - the highest recorded in the city during this period.

Nicky Lloyd, head of ESPC Lettings, said: “Q2 has started to see an upturn in new landlords looking to move into the private rental sector with more people looking to invest.

“We’ve also seen an increase in property owners choosing to rent out their existing properties rather than sell, allowing them to be more flexible about when they may want to sell in future, while being able to achieve an income from the property.

“Demand remains high as always with one-bedroom properties in central

locations being the more sought after.

“Traditionally, one- and two-bedroom homes have delivered the highest yields in the capital. However, in Q2 of 2025, three-bedroom properties in several desirable areas of Edinburgh performed exceptionally well, reflecting increased demand from families seeking larger rental homes in desirable areas.

“While smaller flats remain highly sought after by professionals and couples, this evolution in the market offers new opportunities for landlords looking to diversify their portfolios.”

www.espc.com