Edinburgh is a popular investment area like most other capital cities. It is renowned for its rich history, stunning architecture, and popular festivals. But is Edinburgh a Buy-To-Let property hotspot?
In this article, we’ll explore the ins and outs of this question, with a focus on whether Edinburgh is considered to be a good area for property investment, the best places within Edinburgh to invest, why investing in Edinburgh is a good idea, and whether now is an excellent time to purchase a house in the Edinburgh area.
Is Edinburgh A Good Place To Invest In Property?
Let’s consider whether Edinburgh is an excellent place to invest in property.
A critical factor in determining whether an area is worth investing in is rental yield, and Edinburgh doesn’t disappoint when it comes to this crucial element. A typical rental yield in the Scottish capital is between 4% – 6%, which is promising given that the average rental yield in the UK is 4%.
Edinburgh is also home to a thriving student market, six universities, and three colleges. This results in plenty of students to rent a property to and the potential for investing in HMO student accommodation, which may interest future investors.
Both of these points indicate that Edinburgh is an excellent property investment area. Other reasons support this, such as a rising population, appealing transport links, and historically low unemployment rates. Check out this article for more reasons why Edinburgh is an excellent property investment place.
Where To Invest In Edinburgh?
So, where are the best areas in Edinburgh to invest in property? On average, the rental income on a property in Edinburgh costs around £2,205 PCM depending on property type/size, but property sale prices vary across the city.
We’ve taken a deeper look at this topic and have included some critical data in the sections below.
City Centre
Some of the highest rents in Edinburgh are in the city centre, which may appeal to you if you have upfront cash for higher property prices.
Some key areas include Old Town and New Town, with average property prices of £447,400. While property prices are more expensive, you’ll likely be able to charge towards the higher end of the rental average to achieve an excellent rental yield if purchasing in this area.
North Edinburgh
If you’re looking to invest in a property with a lower sale price, northern Edinburgh may be the best area for you.
North Edinburgh, including Granton, Newhaven, and Leith, is based on the First of Forth coast and is a former industrial dockland area. These areas have undergone regeneration, which is still ongoing, and have an average property price of £212,000. Due to low property prices, North Edinburgh produces some of the highest rental yields, around 6.23%.
West Edinburgh
For mid-price residential property investments, West Edinburgh is worth a look. This area includes suburbs such as Corstorphine, Clermiston, Murrayfield, and Ravelston, which provide good value properties while maintaining an up-market style.
Average property prices range from £290,000 – £370,000, with rental yields reaching 6.64%.
South Edinburgh
South Edinburgh is home to some highly desirable areas, including Morningside, Marchmont, and Bruntsfield. These areas are sought after by those looking for exclusive residential properties; however, these homes will come with a higher price tag of around £370,000 on average.
Rental yields range from 4% – 6% depending on property price.
East Edinburgh
East Edinburgh is a good choice for higher rental yields. It is home to Niddrie, Craigmillar, and Gracemount. Property prices tend to be lower here, averaging between £230,000 and £280,000, offering Rental yields of up to 6%.
While some areas of Eastern Edinburgh are made up of social housing estates, many places have undergone development, with many newer properties making great investments if you’re looking for a budget buy-to-let property.
Why Invest In Edinburgh?
There are many benefits to investing in a buy-to-let property in Edinburgh. Here are some key reasons Edinburgh could be an excellent choice for your next buy-to-let property:
- Good rental yields—Edinburgh’s average rental yields range from 4% to 6%, higher than the average UK rental yield of 4%.
- High rental income – The average monthly rental income is £1,327.
- Growing student market – Edinburgh is home to six universities, resulting in many students seeking student accommodation.
- Increasing population—Edinburgh’s population is 548,000, growing since the 1990s, resulting in many people looking for rental properties.
Is It A Good Time To Buy A House In Edinburgh?
Now is a great time to buy a house in Edinburgh, with its growing buy-to-let market and property prices increasing by 4% over the last year.
Rental yields are also highly regarded, reaching up to 6% in many areas of the Scottish capital. This is due to high rental incomes, ranging from £1,450pcm for a one-bedroom property to £4,058pcm for a five-bedroom property.
Reach Out To We Buy Any Home
If you own a buy-to-let property in Edinburgh and are looking to sell, contact We Buy Any Home. We’re the most significant UK cash property buyer, meaning we can offer you a guaranteed sale in a shorter time frame than if you were selling a property on the traditional property market.
We have a wealth of experience selling properties in Edinburgh and properties with tenants in situ. We specialise in offering our buyers an excellent home price with no hidden fees or lengthy contracts.
Get a free cash offer for your Edinburgh property via our website – you could receive your property funds in as little as seven days!
