Cardiff Rental Market Update: What the Latest Data Means

The latest rental market data for Cardiff paints the picture of a market that is becoming more balanced. After several years of exceptionally limited supply and rapid rental growth, more properties are now coming onto the market, giving tenants greater choice while rents continue to increase at a more sustainable pace.

Although the number of available rental homes has risen significantly over the past year, demand remains healthy across much of the city. Rather than indicating a slowdown, the increase in supply suggests the market is returning to more typical conditions following an extended period of undersupply.

Average rents continue to grow

The data shows that average rents have increased across most property types over the last 12 months.

Some of the strongest annual rental growth can be seen in larger family homes:

• 4+ bedroom houses have increased by 12.8%
• 3+ bedroom houses are up 10.6%
• 2-bedroom houses have risen 5.8%

Smaller flats have also continued to record steady growth, although at a more modest rate. The exception is the 3+ bedroom flat sector, which has experienced a fall in average rents, likely reflecting the smaller number of available properties within this niche market.

Premium properties remain in demand

Looking at the top 25% and top 10% of achieved rents provides an insight into the premium end of Cardiff’s rental market.

High-quality family homes continue to command impressive rental values, with the top 10% of 4+ bedroom houses achieving close to £3,000 per month. This demonstrates that well-presented properties in desirable locations continue to attract strong tenant demand despite the increase in overall supply.

For landlords investing in quality renovations or offering larger family accommodation, the data suggests there remains an opportunity to achieve premium rental values.

What this means for landlords

One of the biggest changes landlords may notice isn’t necessarily rental values—it could be time to let.

With more properties available, tenants have more choice and are taking slightly longer to make decisions. This means landlords may find that properties no longer let within a matter of days as they often did during the peak of the supply shortage.

However, demand remains strong for homes that are:

• Competitively priced
• Well presented
• Professionally marketed
• Located in desirable areas

The market is becoming more competitive, making presentation and pricing increasingly important.

A healthier market for everyone

A balanced rental market benefits both landlords and tenants. Tenants enjoy greater choice, while landlords continue to benefit from stable rental growth rather than the unsustainable spikes seen in recent years.

For investors, Cardiff continues to demonstrate resilient demand and solid rental performance, particularly for larger family homes. While the market is becoming more competitive, landlords who maintain their properties and adopt realistic pricing strategies remain well positioned for long-term success.

Key takeaways

• Rental supply has increased significantly, giving tenants more choice.
• Average rents continue to rise across most property types.
• Larger family homes are seeing the strongest rental growth.
• Premium properties continue to achieve excellent rental values.
• Properties may take slightly longer to let, making pricing and presentation more important than ever.
• Overall, Cardiff’s lettings market is becoming healthier, more balanced and more sustainable for both landlords and tenants.