The best postcodes for rental properties in Edinburgh

Oct 30

3 min read

Edinburgh property portal ESPC has revealed the capital’s top-performing rental postcodes for Q3, highlighting where buy-to-let investors are achieving the strongest returns.

Using rental data from Citylets alongside ESPC’s latest house-price analysis, the report identifies the areas that delivered the most attractive yields between July and September.

Five postcodes emerged as particularly strong performers for landlords and investors.

The ever-desirable EH3 postcode, encompassing the New Town and West End, continued to show excellent results, fuelled by strong demand from professionals seeking homes in this prestigious part of Edinburgh.

With easy access to top restaurants, shops, green spaces and the city’s main business districts, EH3 remains one of the most sought-after rental areas. One-bedroom properties achieved an impressive average yield of 7.4 per cent, while two-bedroom homes returned 6.3 per cent and three-bedroom properties produced 6.9 per cent.

The EH4 district also performed well, attracting tenants to both its upmarket suburbs – such as Cramond and Barnton – and its more affordable pockets like Drylaw, Pilton and Drumbrae. Offering excellent transport connections and proximity to the coastline, EH4 appeals to a wide range of renters.

During the third quarter of 2025, one-bedroom homes delivered an average yield of 6.3 per cent, with two-bedroom and three-bedroom properties generating 6.4 per cent and 6.1 per cent, respectively.

The EH8 postcode remained a dependable choice for investors, following solid results in previous quarters. Covering neighbourhoods including Newington, Duddingston, Abbeyhill and Willowbrae, the area attracts a mix of students, professionals and families. Here, both one and two-bedroom homes achieved yields of 6.2 per cent, while three-bedroom properties offered a higher return of 6.8 per cent.

To the west of the city centre, EH11 delivered particularly strong rental yields thanks to a

combination of relatively affordable property prices and increasing tenant demand.

Encompassing Gorgie, Dalry, Polwarth, Shandon and Slateford, this district appeals to a diverse tenant base. One-bedroom and two-bedroom homes each recorded yields of 6.3 per cent, while three-bedroom properties stood out with a robust 6.9 per cent return – the third-highest yield across Edinburgh during the quarter.

The west Edinburgh postcode of EH12 also posted strong results in Q3 2025. Covering areas such as Corstorphine, Murrayfield, Hermiston and Saughtonhall, this area is known for its excellent amenities, transport links and broad rental appeal. One-bedroom properties led with a yield of 6.8 per cent, followed by two-bedroom homes at 6.7 per cent and three-bedroom properties averaging six per cent.

Nicky Lloyd, head of ESPC Lettings, said: “As what is traditionally the busiest period for the rental sector closes, we’ve seen a more balanced market. The demand for rental property in Edinburgh remains strong, and where there has been a lack of stock previously, we’re seeing a good supply of properties coming to the market.

The passing of the recent Scottish Housing Bill has ended a period of uncertainty meaning investment landlords can be confident in the market they are entering and

understand the proposed changes that are to take place. Demand remains strongest for centrally based one-bedroom properties, many of which are let within the week.”

“There was a return to the traditional trend of one-bedroom homes providing the highest rental yields on average in the capital during Q3. Single-bedroom properties in the capital enjoyed an average rental yield of 6.4 per cent, reflecting increased demand from professionals and couples.

Two-and three-bedroom homes also fared well, with both property sizes attaining an average rental yield of 6.1 per cent, highlighting continued demand from small families looking for more spacious rental homes in sought-after areas of the capital.”

www.espc.com