Understanding the Property Investment Value in Leith, Edinburgh

A few weeks ago I did a podcast with Jonathan Gordon of Clan Gordon called What About Scotland. In the podcast we talk about Leith and why it’s a property investment hotspot. This blog is the follow up, so that you can see exactly why it’s an awesome area to look to invest! 

{**Just as an FYI, this is a guest blog! It’s not spon con :D**}

Edinburgh is a thriving city for real estate investment.  Leith in particular has a number of attributes to consider. 

Leith has excellent connectivity to the East End of Edinburgh City Centre, running through the old docklands and commercial areas surrounding them – right through to St James Centre, which is undergoing a massive transformation. A quaint and culturally rich neighbourhood that can be walked end to end in just 20 minutes, Leith offers 31% of residents the opportunity to walk to work. This figure is almost double the whole city average. 

Bus links also prove to be superior to other cities, with routes taking you to the City Centre, the airport and key railway stations including Waverly and Haymarket. 

Despite being a petite area, Leith has incredible density. There are a significant number of flats and some of the most heavily populated streets in Edinburgh. 1-bed flats are in the highest demand in Edinburgh, with Leith housing the majority of them.

The city also boasts an exciting pipeline of infrastructure and development, with tram line extensions planned from the East End down to Leigh Walk and Newhaven at the Shore. 

Leith is a great area for both professionals and students. With excellent connectivity and a pipeline of work in the near future, the city poses a number of benefits for real estate investments. 

As the city continues to attract young professionals, particularly in the rental sector, the opportunities for landlords have extended beyond the joint tenancy agreements for student sharers. Leith has the capacity and demand for 1-bed properties and it’s important to consider this when looking for your next investment. Purchase prices currently range from £130,000 to £230,000, largely depended on the condition of the flat. 

Average rents have risen in one beds from £589 per month in 2015 to £708 in 2019. Professionals are attracted to an increased luxury, with flats in great condition now achieving 10-15% above the average rent. 

In two beds, we’ve seen a similar increase in rents from £761 per month in 2015 to £893 in 2019. Purchase prices range from £145,000 to £345,000. A two bed investment at the lower end of the price bracket may pose to be more lucrative to investors than the one beds currently on the market.

Over the last 5 years, as the acceptance that time spent in the rental space is increasing for young professionals, an increase in demand for great quality accommodation has been apparent. This is an important thing to consider when planning the finishings and decor of your next investment. As with most cities, get in touch with the local letting agents to get a real lay of the land and a greater understanding of the trends we’ve discussed. 

Thank you to Nick Arthur from Clan Gordon for writing this blog post.