The latest rental evidence from PriceHubble provides an interesting snapshot of the South East Wales rental market, showing two very different stories for Cardiff and Newport.
While both cities continue to benefit from strong tenant demand, Cardiff remains the premium rental market, commanding higher rents, stronger annual growth and a significantly larger volume of rental activity. Newport, however, continues to offer landlords an affordable entry point with a stable market and consistent demand.
Cardiff continues to lead on rental values
Cardiff’s average achieved rent now stands at £1,122 per calendar month, compared with £937 in Newport. That’s a difference of £185 per month, or almost 20% higher rental income for landlords.
Properties coming onto the market are also being advertised at higher levels, with the average asking rent reaching £1,349 per month in Cardiff, compared with £1,030 in Newport.
This reflects Cardiff’s position as Wales’ capital city, attracting professionals, students, corporate tenants and families looking for excellent transport links and employment opportunities.
Growth remains stronger in Cardiff
One of the standout figures from this year’s data is annual rental growth.
Cardiff achieved a 4.7% increase in rents over the previous year, while Newport recorded a more modest 1.3% rise.
Although Newport remains a resilient market, Cardiff continues to demonstrate stronger upward pressure on rental values, suggesting demand is continuing to outpace supply in many areas.
A much larger and more active rental market
The difference in market size is particularly striking.
Over the reporting period there were more than 11,000 rental listings across Cardiff compared with fewer than 1,900 in Newport.
A larger rental market offers greater choice for tenants but also provides investors with more opportunities across different property types, from city centre apartments to family homes in established suburbs.
Which market is right for landlords?
Neither market is necessarily “better”—they simply appeal to different investment strategies.
Cardiff is likely to suit investors looking for:
- Higher monthly rental income
- Stronger capital city demand
- Continued rental growth
- A wide range of tenant demographics
Newport may appeal to landlords seeking:
- Lower purchase prices
- Stable tenant demand
- Good commuter links to Cardiff and Bristol
- Potential for long-term value growth
My view
The latest figures reinforce what we’re seeing on the ground every day. Cardiff continues to outperform in terms of rental values and growth, while Newport remains a dependable market offering excellent value for investors entering the South Wales property market.
If you’re wondering what your own property could achieve in today’s market, I would be happy to provide a free, no-obligation rental valuation and explain how local demand is affecting your area.
Working with property professionals for over 20 years providing advice and services to all property investors.
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