Edinburgh-based property portal ESPC has revealed the city’s top-performing postcodes in terms of rental yields, for the first three months of 2025.
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 the three months of January-March 2025, and one additional area that provided the highest yield across the Capital.
Properties within the highly sought-after EH3 postcode – covering areas including New Town and West End – saw strong performance, with a high volume of professionals keen to live in this iconic part of Edinburgh.
With direct access to top-tier amenities, green spaces, stunning architecture, and convenient commuting options, EH3 continues to attract significant interest from tenants eager to be in the heart of the city.
One-bedroom homes here stood out, delivering an average rental yield of 6.8%. Two-bedroom properties followed with a 5.6% yield, while three-bedroom homes offered a yield of 5.4%.
The fashionable EH6 postcode also delivered impressive results, attracting a broad spectrum of renters.
Home to the highly sought-after area of Leith, EH6 benefits from strong local amenities and improved connectivity thanks to the tram extension. One-bedroom properties achieved yields of 6.3%, while two-bed homes averaged 5.7%. Interestingly, three-bedroom properties outperformed both, with a notable yield of 6.7%, indicating growing interest from families.
EH8 also proved to be a reliable choice for investors in early 2025.
Including areas such as Newington, Duddingston, Abbeyhill, and Willowbrae, EH8 appeals to a mix of tenants, ranging from students to professionals and families.
Rental yields for one-bedroom homes reached 6.4%, with two-bed properties slightly higher at 6.5%. As in EH6, three-bedroom homes led the way, producing a yield of 6.8%.
EH11 showed robust rental performance in the first quarter of the year, likely influenced by lower property prices and increased tenant demand.
Situated west of the city centre, EH11 spans emerging areas like Gorgie and Dalry, as well as established neighbourhoods such as Shandon and Slateford. This mix attracts a diverse tenant base, from students to families.
One- and two-bedroom properties yielded 6.4% and 6.5%, respectively, while three-bedroom homes stood out with an average yield of 6.8%.
The EH12 postcode also recorded strong results during Q1 of 2025.
Located to the west of the city centre and including Corstorphine, Murrayfield, Hermiston, and Saughtonhall, EH12 is popular with a wide range of renters. It offers excellent amenities and transport links, making it a desirable location for students, young professionals, and families alike.
One-bedroom homes here led the way with a rental yield of 7.1%, followed by two-bed properties at 6.6%. In contrast to the trend seen in other areas, three-bedroom homes in EH12 generated the lowest yield, averaging 5.4%.
And the portal suggests special mention should be made for three-bedroom properties in the EH1 postcode area, which offered the highest rental yield in Edinburgh, at 7.3% on average. Covering the Old Town and around Princes Street, EH1 offers unrivalled access to the beating heart of the Capital.
Nicky Lloyd, Head of ESPC Lettings, says: “Investment in the buy-to-let market started slowly in Q1 of 2025, due to the announcement of the increase of the Additional Dwelling Supplemen, but with changes to rent controls we’re seeing landlords being tempted back to the market.
“Tenant demand remains strong, although higher-end properties are taking longer to let and one-bedroom furnished properties are still the highest in demand.
“There has also been a surge in tenants looking for new properties because their landlords are selling, meaning a rapid increase in a competitive market.”
“In a shift from the long-standing trend of one- and two-bedroomproperties providing the highest average rental yields, three-bedroom properties have performed very well during Q1 of 2025.
“Although demand from young professionals and couples for rental homes is still high, the emergence of more families seeking homesin desirable Edinburgh areas is an interesting change to the rental landscape of the capital.”
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