Edinburgh is, by no means, a cheap place to invest in buy-to-let.
With average property prices just shy of £340,000, according to data from the Office of National Statistics (ONS), the Scottish capital is one of the most expensive cities in the UK for homebuyers.
But don’t let that deter you.
After all, the Edinburgh property market, much like that of London, tends to move faster than its counterparts.
The same ONS data shows average house prices have grown by 6.5% year-on-year (August 2023 to August 2024), outpacing the rest of Scotland (5.4%).
Meanwhile, the city’s status as an attractive place to live, work and study has seen the population increase (data from 2020 shows a 12% jump in just 10 years). That’s had a knock-on effect on rents, with the demand from a highly-skilled, young workforce pushing rental prices up nearly 14% in 2024.
So, although there are more affordable options if you need your budget to stretch further, particularly around England’s northeast (see our buy-to-let guide to Newcastle, for example), Edinburgh can offer a huge return on investment for buyers with the cash.
The big question is, where?
It’s a fairly compact city, and incredibly beautiful too, but it’s still large enough that different parts of the city can generate vastly different rental yields and capital growth. As such, we’ll turn to the latest market data to find the five best areas for a buy-to-let in Edinburgh.
Let’s dive in.
Top 5 Areas For Buy-to-Let In Edinburgh By Rental Yield
Using exclusive industry data, we’ve collected the top 5 postcodes in Edinburgh by rental yield. You can also see the average monthly rent, the average property price, and how prices have changed over the last five years.
| Postcode | Avg Yield | Avg Rent P/M | Avg Asking Price | 5 Year Price Change |
|---|---|---|---|---|
| EH17 | 8.30% | £2,014 | £289,550 | 4% |
| EH11 | 7.20% | £1,189 | £198,839 | 19% |
| EH5 | 6.90% | £1,429 | £250,137 | 13% |
| EH16 | 6.50% | £1,429 | £264,242 | 30% |
| EH6 | 6.30% | £1,325 | £252,755 | 17% |
1. EH17 – Craigour, Moredun, Burdiehouse
This postcode covers several suburbs south of the city centre, including Burdiehouse, Craigour, Ferniehill, Fernieside, and Moredun.
Historically, these areas have had relatively high levels of deprivation compared to other parts of Edinburgh. Despite that, they generate the strongest rental yields in the city at 8.3%, although capital growth is more limited (4% in the last five years).
It’s likely driven by a demand for affordable family homes that offer a bit of everything: nearby green spaces, schools, good connection links (the City of Edinburgh bypass runs just south), and easy access to the centre.
So, putting aside its socioeconomic challenges, these factors make EH17 an appealing spot for investors focusing on rental income rather than rapid capital appreciation.
2. EH11 – Haymarket, Gorgie, and Saughton
EH11 covers a long slice of central Edinburgh, stretching westwards from Haymarket to the edge of the city’s bypass at Saughton.
This makes the area quite varied. There are businesses, cafes, restaurants, parks, and even two campuses for Edinburgh Napier University nearby. As a result, it’s highly popular with students, young professionals, families and more – resulting in a higher-than-average demand for rental properties and, as a result, strong yields (7.2%).
Plus, with a 19% increase in prices over the past 5 years, it’s one of the best areas in Edinburgh for capital appreciation. This likely reflects its growing popularity among tenants and buyers who are priced out of the most central areas, but still want good access to the city.
3. EH5 – Granton, Pilton, and Trinity
EH5 covers the northern tip of the city, with a coastline looking out across Edinburgh’s harbour.
Granton and Pilton, traditionally more working-class areas, offer more affordable housing, while Trinity has a reputation as a more affluent, family-friendly neighbourhood.
Granton, in particular, has seen significant regeneration efforts, including a £16m waterfront redevelopment project boosted by the government’s Levelling Up Fund. The aim is to revitalise the area with new housing, amenities, and transport links.
This has the potential to be transformative for the area over the coming years, so keep an eye out for upcoming residential property investment opportunities.
4. EH16 – Liberton, Craigmillar, and Niddrie
EH16 covers a huge area south of the city centre. It’s adjacent to the EH17, the top performer in this list, and it shares some similarities.
Historically, a deprived area, but there are signs of change.
Craigmillar, in particular, has been part of extensive regeneration projects aimed at transforming the area with new housing, schools, and amenities, making it a more desirable residential location. The town centre’s housing development project won national recognition in 2021.
Naturally, this type of investment can boost property values. It has likely contributed to EH16’s table-topping five-year price growth of 30% (the best in all of Edinburgh).
Meanwhile, educational institutions like the University of Edinburgh’s King’s Buildings campus and Edinburgh Royal Infirmary are within EH16 – making it an attractive location for both students and healthcare professionals and adding to the rental demand.
5. EH6 – Leith
EH6 is home to Leith, which is known for its lively cultural scene, trendy cafes, restaurants, bars, and art spaces. The area’s distinctive character attracts young professionals, creatives, and families who want to be near the city’s vibrant waterfront.
This is an incredibly popular area, so it’s no surprise to see healthy rental yields of 6.3% and capital growth of 17% in the last five years.
EH6 has easy access to central Edinburgh, with a new tram extension launching in 2023 improving connectivity between the city’s core and airport. This increased accessibility is likely to boost demand further, both from tenants who value convenience and from buyers who foresee long-term growth.
Summary
Scotland, on average, has the strongest rental yield performance in the UK, according to our 2024 research.
Edinburgh’s local property market certainly helps. The capital city draws in workers, students, and families alike. It’s an exciting place to live – rich with history, beautiful architecture, huge cultural events (Edinburgh Fringe, anyone?), and lively social scenes.
Hopefully, this guide has given you an idea of where to look if you’re considering investing in the city. We have followed the data here, but there is more to consider too – for example, the student-heavy areas of Newington and Marchmont, the cobbled streets of New Town, or the village feel of Stockbridge.
Edinburgh is diverse and stunning, so be sure to do your research and get a feel for the place before making any investment decisions.
If you would like help with that, why not speak to our team?
We specialise in connecting investors with suitable buy-to-let opportunities across the UK. Get in touch to discuss your budget and goals, and we’ll help you find the perfect spot. Fill in the contact form below to get started.
About Our Data
The data in this article is an accurate representation of the Edinburgh property market as of October 2024. We’ll update this report next year, in 2025, with fresh data.
