According to ONS (Office of National Statistics) the average rental values across the UK rose by 1.4% in the year to November. Rental market analysis shows rental growth expectations remain slightly positive, with most parts of the UK expecting an increase. The estimate for Wales is an increase of 1.6% over the next 12 months.
However, Wales and Cardiff statistics differ significantly. Wales is still a fantastic place to invest in property as prices remain low compared to a lot of the UK. Cardiff is the Capital and hub of Wales, and although more expensive to buy here, the growth of Cardiff and the demand for property here far outweighs anywhere else in Wales.
- Over the last 12 months, the average rent achieved for properties let in Cardiff was £828 per month. This is a massive +11% change on the previous 12 month period.
- 46% of properties let in the past 12 months were flats, achieving an average rental value of £775 per month. Houses achieved an average rent of £922 per month.
- 59% of tenants are aged between 18 and 29.
Rental increases in Cardiff far surpass the averages for Wales. This is due to high demand pushing prices upwards, connect this with low stock and you get increases of this scale.
Flats make up nearly half (45.6%) of all rentals in Cardiff. Flats are always in high demand due to their generally lower cost and allows more non-Cardiff residents to locate themselves in the city during the working week. Though, does size matter? At the moment, the average rent for a studio property in Cardiff is now at £658 which is a whopping 22% increase over the last 12 months.
A surprising difference this year has been the increase in demand for detached properties. Mainly due to more people working from home, tenant’s needs have changed. Spare rooms for an office, faster broadband and a garden have been the sudden shift in tenant’s requirements. Due to this swing in needs, and the general lack of detached properties on the rental market, the prices for detached properties have shot up over +30% in Cardiff. The average rental for a detached home is now £1326 per month.
If you would like more information about the rental market in Cardiff or any other property advice please get in touch.
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