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Edinburgh Buy To Let
Edinburgh Property Investment Guide
Edinburgh Property Investment Guide

The Best Buy to Let Property Investment Areas in Edinburgh

Why invest in Edinburgh?

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 hepful guide, find out more about the best areas for Edinburgh property investment and reasons why you should invest in Edinburgh.

Property Investment 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.

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.

Edinburgh Property Investment

 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 Buy To Let

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.

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.

How does Edinburgh compare to other areas?

With London’s housing market struggling, Edinburgh is proving to be 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. 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, prospective investors 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 just by settling for 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. However, despite this historical prowess, the housing demand from tenants is quite the stark contrast. Young professionals and students graduating into work in the city are increasingly looking for luxury, purpose-built accommodation, 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 nationally.

While Edinburgh 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.

Property Investment Edinburgh

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.

Buy To Let Edinburgh

Property Investment Edinburgh: Where are the Edinburgh property hotspots?

With five of the ten best postcodes in Scotland for rental yield, Edinburgh is one of the most consistent and secure investment areas in the north of the UK. Scotland is also seeing an increasing number of people happy to rent their homes rather than buying, meaning that buy to let Edinburgh properties should be popular going forward. In terms of Edinburgh property, the best areas for investment are as follows:

Trinity

Population: 31,414 (Forth area)

Average House Price: £204,295

EH6 postcode homes in-and-around Trinity are among the most lucrative buy to let Edinburgh property hotspots. A largely residential area, this northern district is one of the more suburban options in the city, making it a popular choice for young people wanting to settle down slightly, but still with ready access to the city. This postcode area contains an average rental yield of 6.23%, with the median average price sitting at £204,295.

Dalry

Population: 7,821 (33,100 cumulatively around Sighthill/Gorgie)

Average House Price: £182,399

The Dalry district benefits from its close proximity to the city centre, wedged in-between Haymarket and Gorgie. This makes it one of the most popular property investment Edinburgh locations. Those wanting to invest in Edinburgh should look towards this area, as the properties within the EH11 postcode are the second-highest in all of Scotland, with an average rental yield of 6.64%. These properties are among the best the buy to let Edinburgh market has to offer.

Other Edinburgh property hotspots within the EH11 postcode include Sighthill, Merchiston and Gorgie. The average asking price sits at £182,399.

Stockbridge

Population: 34,099 (Inverleith area)

Average House Price: £373,044

Another good area to invest Edinburgh contains is Stockbridge. This area again encapsulates the picturesque, ‘chocolate-box’ aesthetic that many tourists look for when visiting Edinburgh in the summer, and it has a vibrant atmosphere filled with friendly faces, cafés and shops. The area is also home to the Royal Botanic garden, one of the most stunning public garden attractions the UK has to offer.

A desired location for those with slightly more capital to commit, the average house price falling under the EH3 umbrella sits at £373,044, and with an above-average rental yield of 6.19%.

Leith Walk

Population: 32,000

Average House Price: £238,446

Spanning the EH6 and EH7 postcodes, Leith is a northern part of Edinburgh that has benefitted from new developments and regeneration, and is now one of the most popular areas of the city. Many come to visit this area for its picturesque docks, the famous Leith walk, and the Ocean Terminal shopping centre, and is easily accessible via walking or bus.

In the EH7 postcode, the average asking price is £238,446, with an average rental yield of 6.02%.

 Newington

Population: 37,300 (cumulatively with Southside)

Average House Price: £249,304

One of the areas that centres around the popular EH8 postcode is Newington, which has been hailed by students as a great place to visit while studying at University. With the education sector a short walk away, it’s popular for those who want to be able to walk to and from their uni library or facilities, and encompasses the feeling of a student village community. For homes falling within this postcode bracket, the average yield is a healthy 5.99%, with the price sitting at around £249,304.

Edinburgh Property Investment

 Why choose RW Invest for UK Investment opportunities and beyond?

RW Invest 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.

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.

 

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