Edinburgh Property Investment

Edinburgh Property Investments

A Thriving UK Investment City

With its powerful educational draw, history and culture, and a sustained, growing population of young professionals, buyers should consider Edinburgh property investment for a secure and lucrative venture. One of the most popular cities in the UK, Edinburgh property hotspots will continue to thrive throughout the city’s continued regeneration. With this helpful guide, find out more about the best areas for Edinburgh property investment and reasons why you should invest in Edinburgh.

 

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Why invest in Edinburgh?

Invest Edinburgh – Capital growth

Alongside the above areas for investment opportunities Edinburgh contains, the city seems not to have been affected as severely by Brexit fears and doubts as some of the other major cities in the UK. Within Edinburgh property, the best areas of investment have had an impressive past twelve months in terms of their increasing value, and those with limited capital should look toward the city sooner rather than later if interested.

Edinburgh’s property market, when looking at capital growth, shows a stark difference to the dipping trends set by London in the wake of Brexit. In the fourth quarter of last year, it was reported that growth reached 10.6% on average, far above the national average, and from May 2018 to May 2019 the increase in Edinburgh specifically has reached 6.2%. Investors will surely want to look towards this city (and even more so the concentration points within it) if wanting to capture that lightning in a bottle moment. Locals are equating this growth with the city’s ability to withstand the political uncertainty. Not every market can come to a complete standstill while the continued EU negotiations take place, and so Edinburgh is one of the outliers- an unaffected city.

For the first-time buyer looking into property investment, Edinburgh is a secure choice.

The city’s consistent achievement in terms of education also only serves to bolster the Edinburgh property investment market for years to come, as prospective students will continue to come to the area for its elite academia, and then stay for its culturally rich environment and employment opportunity. The city’s employment rate currently stands at a healthy 76%. London is often looked upon by many as the ‘place to be’ for job opportunities, but Edinburgh clearly is a worthwhile alternative.

edinburgh is a secure choice

It’s worth noting that within Edinburgh’s vast cityscape, some areas are better projected than others for passive income. The city largely trends towards the positive end of the property spectrum, but the EH4 postcode is perhaps one to avoid, with an average rental yield of 3.76%. This encompasses areas that begin to branch out from the demanded city centre, including Dean Village, Comely Bank, Barnton and Cramond.

For the experienced investor looking to expand their property portfolio, the property investment Edinburgh market is a recommended choice for those looking even further northwards than Liverpool and Manchester. With capital appreciation on average set to rise in the city, there is a clear opportunity to make a solid return on investment.

Furthermore, with an uninterrupted flow of student tenant demand, student property investments in Edinburgh should be another opportunity that buyers should look into if wanting to expand their horizons. Purpose-built apartment blocks and flats are easily manageable for the investor with a varied property list, and can be purchased singularly or as multiple clustered investments, rooted in the area going forward as it continues to thrive.

Those unsure of how to find the best property for sale Edinburgh has to offer should look to compare both the numbers and figures generated by the different areas in the city, and what prospective tenants want from their accommodation. Factors such as transport link, local amenities and proximity to the city-centre affect the tenant interest, and the potential for capital growth and fast and high rental returns result in a more sought-after location from the perspective of the buyer.

Invest Edinburgh – Cultural Draw

Aside from investment opportunities, Edinburgh is considered one of the UK’s most haunted cities. The winding, cobbled streets and tall archaic buildings certainly evoke those spooky connotations that many of us associate with classic horror. The darker parts of the city’s history from the days of yesteryear include the plagues, witch hunts and executions, and even torture dungeons. The Edinburgh City Chambers, re-opened to the public in 2003, capture the feeling of stepping back in time, and give that area of the city a unique historical draw that hardly any other city in the UK can replicate.

For something a little more light-hearted, the Edinburgh fringe festival is an annual event that draws in thousands of tourists to celebrate comedy in all shapes, sizes and forms. From well-known comedians such as Al Murray to cult internet sensations such as Brian’ Limmy’ Limond, the variety of comics in the city during this culturally concentrated time very much echoes the sentiment and job opportunity of Edinburgh as a whole: There is something for everyone.

In 2018, the festival, which spanned 25 days across August, saw over 55,000 performances of 3,548 shows, in 317 venues. It is considered the biggest arts festival in the world, and an experience that does only good for the buy to let Edinburgh market and overall city economy. Astonishingly, it has been estimated that Airbnb guests alone during the Edinburgh Fringe period will boost the city economy by £48 million.

 

Did you know? During August, when the city’s festivals are at their highest point, Edinburgh’s population actually grows massively, making it temporarily the second-largest city in the UK.

Edinburgh Property Hotspots – A Great Place to Live

Even setting the city’s culture and heritage to one side for a moment, Edinburgh is also one of the best places to live for tenants in terms of the cost of living in relation to the salaries paid and the job market, according to Totally Money. Edinburgh comes in at number four in the UK, and this is ignoring “scenery, culture or connections”.

London is often looked upon as the place to be for careers in the UK, with job opportunities aplenty, but with an increasing cost of living and more opportunities arising in other cities, many are starting to have their heads turned. With a healthy 76% employment rate and a bustling young workforce, Edinburgh remains and will continue to remain a viable option. In turn, this is also subsequently true of the buy to let Edinburgh market.

There is a number of regeneration plans across Edinburgh property hotspots, from improvements to the canal area to the Royal Mile project and plans for the city’s eight town centres, that are either in-progress or planned for the promising future of the city.

Edinburgh’s canal hubs, interweaved in amongst the beautiful cityscape, contribute nicely to the aesthetic, attracting more visitors, tourists and tenants in the process. They have quickly become an asset to the city after a build-up in recent years, and the city council’s union canal strategy will continue to keep it a priority.

Leith Walk is one of the busiest streets in Edinburgh and has again enjoyed vast improvements since the beginning of the 21st century. Having been the derelict setting for the popular film Trainspotting in 1996, the area now is vastly different, home to many high-end restaurants, bars, and the revamped Leith Theatre. Residents frequent the area, and this clearly showcases the continuing promise the city has for the future, as other developing areas aim to follow suit.

Regeneration in Edinburgh aims not only to modernise the city, but to galvanise and highlight its existing features, applying a fresh lick of paint to what makes it such a great place to live. The city’s identity is one of its most important factors, and so it is crucial, for the sake of both tenants and investors, to keep that intact going forward. The Royal Mile is the perfect example of this, a street where the mix of eclectic modern amenities and historical draw share a symbiotic relationship, allowing the urbanite to flow from one to the other as they please.

Edinburgh remains the second most visited city in the UK, behind only the expected London. Attracting over 13 million people each year, the Edinburgh castle rises above the modern apartment buildings and structures of the city skyline, and is as iconic of a landmark as anything in London

Continuously voted by many as one of the best places to live in the UK, Edinburgh’s consistent quality again makes it a desirable place to be. You might think that with its traditional architecture and castle locale that the city is a bit old-fashioned in its ways, but with a large student and young population, this isn’t the case. The classic city has been retrofitted with a healthy amount of technology, and modern developments ensure that to invest in Edinburgh is a smart choice. In almost a pendulum effect of the historical and the forward-thinking, the city offers the best of both worlds for those wanting to visit.

The University is also one of the city’s major historical components, with a large number of the population due to the studious youth. 20% of the city’s population are in their 20’s.

With around 60,000 applications from hopeful students each yeah, the second-highest number in the UK, the city is a desirable location for investors as the tenant demand is evident. Notable alumni include Charles Darwin, Gordon Brown, and even J.K Rowling. The Harry Potter author was very much inspired by the city’s architecture and the city is hailed by many as the ‘birthplace of Harry Potter’.

University cities in Scotland offer excellent returns for landlords due to their continued success and thriving community of students and graduates that go on to do great things in the city. Four Scottish universities rank in the top 25 according to the Times Higher Education rankings. Edinburgh University is ranked at number six in the UK, and 25th overall, an incredibly impressive feat. With property investment, Edinburgh provides an air of confidence to buyers as they can rest assured knowing the tenant demand will be there.

Property Investment Edinburgh - Regeneration

There is a number of regeneration plans across Edinburgh property hotspots, from improvements to the canal area to the Royal Mile project and plans for the city’s eight town centres, that are either in-progress or planned for the promising future of the city.

Edinburgh’s canal hubs, interweaved in amongst the beautiful cityscape, contribute nicely to the aesthetic, attracting more visitors, tourists and tenants in the process. They have quickly become an asset to the city after a build-up in recent years, and the city council’s union canal strategy will continue to keep it a priority.

Leith Walk is one of the busiest streets in Edinburgh and has again enjoyed vast improvements since the beginning of the 21st century. Having been the derelict setting for the popular film Trainspotting in 1996, the area now is vastly different, home to many high-end restaurants, bars, and the revamped Leith Theatre. Residents frequent the area, and this clearly showcases the continuing promise the city has for the future, as other developing areas aim to follow suit.

Regeneration in Edinburgh aims not only to modernise the city, but to galvanise and highlight its existing features, applying a fresh lick of paint to what makes it such a great place to live. The city’s identity is one of its most important factors, and so it is crucial, for the sake of both tenants and investors, to keep that intact going forward. The Royal Mile is the perfect example of this, a street where the mix of eclectic modern amenities and historical draw share a symbiotic relationship, allowing the urbanite to flow from one to the other as they please.

Tourism in Edinburgh

Edinburgh remains the second most visited city in the UK, behind only the expected London. Attracting over 13 million people each year, the Edinburgh castle rises above the modern apartment buildings and structures of the city skyline, and is as iconic of a landmark as anything in London

Continuously voted by many as one of the best places to live in the UK, Edinburgh’s consistent quality again makes it a desirable place to be. You might think that with its traditional architecture and castle locale that the city is a bit old-fashioned in its ways, but with a large student and young population, this isn’t the case. The classic city has been retrofitted with a healthy amount of technology, and modern developments ensure that to invest in Edinburgh is a smart choice. In almost a pendulum effect of the historical and the forward-thinking, the city offers the best of both worlds for those wanting to visit.

Buy to Let Edinburgh: The University Sector

The University is also one of the city’s major historical components, with a large number of the population due to the studious youth. 20% of the city’s population are in their 20’s.

With around 60,000 applications from hopeful students each yeah, the second-highest number in the UK, the city is a desirable location for investors as the tenant demand is evident. Notable alumni include Charles Darwin, Gordon Brown, and even J.K Rowling. The Harry Potter author was very much inspired by the city’s architecture and the city is hailed by many as the ‘birthplace of Harry Potter’.

University cities in Scotland offer excellent returns for landlords due to their continued success and thriving community of students and graduates that go on to do great things in the city. Four Scottish universities rank in the top 25 according to the Times Higher Education rankings. Edinburgh University is ranked at number six in the UK, and 25th overall, an incredibly impressive feat. With property investment, Edinburgh provides an air of confidence to buyers as they can rest assured knowing the tenant demand will be there.

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How Does Investing in Rental Property Edinburgh Compare to Other Areas?

So we’ve discussed the benefits of investing in rental property in Edinburgh in our Edinburgh property guide, but how does this Scottish city compare to other parts of the UK when it comes to investments?

For a lot of investors, particularly those from overseas, London is the first place that comes to mind in regards to buy to let. With London’s housing market struggling, however, those who buy property in Edinburgh are taking advantage of a suitable alternative to England’s capital for investors, as its market continues to thrive alongside the demand. The city has multiple major keystones, such as its rich history, educational sector and sustained popularity, that all combine to make it an investment opportunity that feels like a perfectly viable alternative to London.

In terms of cost, while it does have its fair share of expensive properties, the averages still show that the best buy to let Edinburgh areas are far more affordable than London. Those who invest in Edinburgh can take advantage of lower prices and higher yields than in the capital. Edinburgh’s best postcode, EH11, sits at £182,399 according to Totally Money. London’s best postcode offering, the E6 East Ham area, costs an average of £354,162, and has a lower rental yield of 4.81%.

To put this into perspective, those who buy property in Edinburgh could almost purchase two properties under the EH11 postcode, as opposed to one in East Ham, and create a much more efficient passive income stream than they would in the stagnating South. The influence that the city’s heritage has over modern life in Edinburgh is apparent, and just walking along the streets as a tourist or resident today, you will notice that the history still permeates the culture.

Liverpool Investment Opportunities

Young professionals and students graduating into work in the city are increasingly looking for the perfect luxury rental property in Edinburgh, with ease-of-access to the area’s many amenities and facilities. As city-living becomes more mainstream and popular, this is very much the growing trend within the most popular urban areas, and many are looking to buy an apartment in Edinburgh in order to appeal to this demand. With many great business opportunities and cultural offerings in Edinburgh, not to mention better affordability, a lot of young people are choosing this city over the excessive living costs of London.

While the choice of property in Edinburgh to buy presents a fantastic investment opportunity, however, there are still areas that offer more potential. Manchester and Liverpool, for instance, have recently been hailed some of the top UK areas for property investment. These North West cities are known to boast even more affordable house prices and attract larger levels of rental demand, which results in some very attractive rental yields of around 5.55% on average. In Liverpool, rental yields in the L1 postcode can reach heights of 10%, making this one of the UK’s best cities for rental returns.

Should I Invest in the North West Instead of Edinburgh?

While those who look for property to buy in Edinburgh for investment purposes are definitely on the right track towards buy to let success, some would argue that there are better opportunities in England’s North West region. Liverpool and Manchester certainly have a lot to offer in terms of rental yields and capital growth potential, but whether or not you opt for a North West investment instead of buying rental property in Edinburgh depends on factors such as your budget and individual goals.

For instance, buy to let in Edinburgh is less affordable than Liverpool or Manchester buy to let. This is because the average cost to buy property in Edinburgh is a lot higher than the average in the North West, particularly Liverpool where average property prices for the city centre fall below £140,000. If you can’t decide which city to invest in and you have a large enough budget available, the best option could be to find a property in Edinburgh to buy in combination with an investment in Liverpool and Manchester. This way, you can invest in Edinburgh as well as the top-performing North West cities and benefit from a combination of lucrative returns while spreading your risk across different properties.

Why choose RW Invest for UK Investment opportunities?

RWinvest offers a comprehensive and continuous service in investment properties for sale in the UK, with an expert aftercare team that is on hand (and available to contact) at all times to help you with your prospective investment every step of the way.

Not only that, but for those looking for advice and expert guidance on how to widen their property portfolio, RW Invest specialises in property investment UK-wide, with investment opportunities in burgeoning northern areas such as Liverpool and Manchester. If you’ve enjoyed our Edinburgh property guide, head to our area guides section to read information on some other top hotspot cities in the UK.

About Our Data

For facts/figures compiled in this page about Buy to Let Edinburgh, information was taken from Zoopla and Totally Money.

For information on Edinburgh’s University ranked (both within the UK and worldwide), please refer to the Times Higher Education World University Rankings, and Gov.Scot for population information.

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