How much demand is there for professional, student, family and luxury lets in Cardiff?
When considering investment opportunities in Cardiff, it’s important to understand how demand can vary, depending on the different type of let you go for. From professionals seeking convenient locations near their workplaces to students searching for top-notch accommodation, Cardiff offers a range of potential avenues for investors. In this blog, we will explore the demand for different types of rental properties, with some insights into the Cardiff rental market in 2023.
Demand for Professional Lets in Cardiff
The demand for good quality Cardiff properties within easy access of work has always been strong and regularly outweighs the supply. At the moment, due to a shortage of available properties to rent across the country, the interest generated in every home we list is staggering and it’s not uncommon for a landlord to secure contract-holders within just a few hours of us listing the property.
Top tip: The period around Christmas and New Year is still the slowest for lettings across the country. To avoid potential vacancies and loss of rental income, we strongly advise landlords to avoid tenancy end dates during this period of reduceddemand.
Read: Understanding occupancy rates in different types of Cardiff lets
Demand for Student Lets in Cardiff
As with professional lets, demand amongst students for private accommodation in Cardiff is extremely high due to its several universities and swelling student population. Anything from a one or two-bedroom flat to an eight or nine-bedroom house is the subject of great deal of competition from prospective contract-holders. Just as the student population here is increasing, so too are their budgets. We meet many students who have moved here from abroad with generous grants and scholarships: a large percentage of whom have part-time jobs along their studies, and then there are those with parental contributions or simply a preference for higher quality living. To attract these student contract-holders, you need to make sure your property meets their evolving needs.
Whilst rent prices have been on the rise in recent years, so too has the quality of student accommodation. Students expect far more from their accommodation than ever before, and a property not up to the required standard will be quickly overlooked in favour of something better. Students with higher budgets understandably want a place that ticks all the boxes: functional, well-maintained, comfortable, aesthetically pleasing and fitted with modern amenities.
This property recently let in just 9 days at £575 per room (excluding bills), which equates to a total income of £4,025pcm for the landlord. What's more, the landlord will be earning £1,925 MORE rent per month than they were previously, after taking on board our improvement suggestions. So if you’re considering investing in the student market, make sure you get some expert advice on what the modern student is looking for.
Read: Our complete guide to HMO investment in Cardiff
Demand for Family Lets in Cardiff
Naturally, the bigger the family, the bigger the home one requires. So whether it’s a recently-married couple aiming to start a family or parents increasing the size of their brood, there is always a demand for family homes in Cardiff. Not only that, but many parents will move to ensure they live within the catchment area of their preferred primary or secondary school, giving their child or children the best chance of being admitted in any given academic year intake.
Families often seek rentals in areas with good schools, safe neighbourhoods, and a sense of community. Given our experience and knowledge of Cardiff, we can accurately predict whether a home will attract interest from families or not. The north of the city, for example – in areas such as Llanedeyrn, Pentwyn, Pontprennau, Cyncoed and Llanrumney – is popular amongst families, but that’s not to say that areas closer to the city centre, like Roath, Splott, Adamsdown and Penylan, aren’t as well. The only difference is that there tend to be more young professionals living in areas close to the city centre – typically in buildings that have been converted to flats –because it’s often a short walk or cycle to work for them.
Read: The typical running and repairs costs for different types of lets
Demand for Luxury Lets in Cardiff
Whilst the luxury rental market here is still nowhere near as buoyant as it is in London, it has experienced significant growth in recent years. Prospective buyers with deep pockets are cautiously adopting a wait-and-see approach, hoping for potential price drops before they purchase a home, so prefer to rent in the short-term. This is especially true for individuals who have relocated to Cardiff for work temporarily and don’t plan on putting roots down here.
Notable developments like Bayscape and Adventurers Quay have played a big role in the transformation of Cardiff Bay, establishing this part of Cardiff as the premier destination for discerning investors seeking to purchase high-spec rental apartments. The revitalisation of the Bay extends beyond residential properties, with new shops, offices, restaurants and bars increasing its appeal to those who enjoy the finer things in life, alongside picturesque waterside views.
Luxury lets in Cardiff Bay are attractive not only for business professionals, but also for actors and crew members involved in film or TV projects spanning several months in the city. These individuals often prefer the convenience and comfort of luxury rentals, especially if their employers are covering the rent.
Excluding London, Cardiff has outpaced most regions in the UK in terms of property price growth, making it an attractive market for luxury property investors as their value here continues to grow steadily. Whilst demand is low compared with the other types of let listed here, due to the small number of available properties hitting the market, with a smaller pool of contract-holders fighting for what’s out there you can command higher rents.
Whilst this guide gives you a general overview of rental demand in Cardiff, it is important to note that the market is constantly fluctuating. If you are contemplating investing in Cardiff and seeking expert guidance, we highly recommend reaching out to our Senior Market and Investment Specialist, Rhys Owen who will be able to share his extensive knowledge and insights into local market trends. Get in touch via rhys.owen@cpshomes.co.uk or call 02920 668585.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
