Using rental data from Citylets alongside ESPC’s latest house price analysis, the report identifies the areas that delivered the most attractive yields between July and September. Five postcodes emerged as particularly strong performers for landlords and investors.

The ever-desirable EH3 postcode, encompassing the New Town and West End, continued to show excellent results, fuelled by strong demand from professionals seeking homes in this prestigious part of Edinburgh. With easy access to top restaurants, shops, green spaces and the city’s main business districts, EH3 remains one of the most sought-after rental areas. One-bedroom properties achieved an impressive average yield of 7.4%, while two-bedroom homes returned 6.3% and three-bedroom properties produced 6.9%.

The EH4 district also performed well, attracting tenants to both its upmarket suburbs – such as Cramond and Barnton – and its more affordable pockets like Drylaw, Pilton and Drumbrae. Offering excellent transport connections and proximity to the coastline, EH4 appeals to a wide range of renters. During the third quarter of 2025, one-bedroom homes delivered an average yield of 6.3%, with two-bedroom and three-bedroom properties generating 6.4% and 6.1%, respectively.

Meanwhile, the EH8 postcode remained a dependable choice for investors, following solid results in previous quarters. Covering neighbourhoods including Newington, Duddingston, Abbeyhill and Willowbrae, the area attracts a mix of students, professionals and families. Here, both one- and two-bedroom homes achieved yields of 6.2%, while three-bedroom properties offered a higher return of 6.8%.

To the west of the city centre, EH11 delivered particularly strong rental yields thanks to a combination of relatively affordable property prices and increasing tenant demand. Encompassing Gorgie, Dalry, Polwarth, Shandon and Slateford, this district appeals to a diverse tenant base. One-bedroom and two-bedroom homes each recorded yields of 6.3%, while three-bedroom properties stood out with a robust 6.9% return – the third-highest yield across Edinburgh during the quarter.

Finally, EH12 also posted strong results in Q3 2025. Covering areas such as Corstorphine, Murrayfield, Hermiston and Saughtonhall, this west Edinburgh postcode is known for its excellent amenities, transport links and broad rental appeal. One-bedroom properties led with a yield of 6.8%, followed by two-bedroom homes at 6.7% and three-bedroom properties averaging 6.0%.

Nicky Lloyd, head of ESPC Lettings, said: “As, traditionally the busiest period for the rental sector closes, we’ve seen a more balanced market. The demand for rental property in Edinburgh remains strong, and where there has been a lack of stock previously, we’re seeing a good supply of properties coming to the market.

“The passing of the recent Scottish Housing Bill has ended a period of uncertainty meaning investment landlords can be confident in the market they are entering and understand the proposed changes that are to take place. Demand remains strongest for centrally based one-bedroom properties, many of which are let within the week.

“There was a return to the traditional trend of one-bedroom homes providing the highest rental yields on average in the capital during Q3 of 2025.

“Single bedroom properties in the capital enjoyed an average rental yield of 6.4%, reflecting increased demand from professionals and couples. Two- and three-bedroom homes also fared well, with both property sizes attaining an average rental yield of 6.1%, highlighting continued demand from small families looking for more spacious rental homes in sought-after areas of the capital.”