Lettings seasonality is back: Cardiff Rental Market Update
The Cardiff rental market is changing, and seasonality has once again become a key factor in shaping tenant demand and rental values. After several years of demand outstripping supply, particularly during the post-pandemic boom, we’re now seeing a return to a more traditional pattern of lettings activity. Understanding these seasonal trends is essential for landlords who want to keep their properties tenanted and achieve the best possible returns.
Summer demand drives the market
Summer has always been the peak season for lettings, and this year is no exception. Properties available for move-ins during the summer months, particularly those appealing to students and young professionals, are in high demand and seeing the strongest rental growth.
Outside of this period, however, the picture is more subdued. Tenant demand is still strong, but it’s not at the levels we saw during the post-pandemic surge. Many tenants are now hitting an affordability ceiling, as highlighted by a recent Rightmove report, which revealed:
- A 7% increase in available rental properties compared to last year.
- A 19% drop in the number of prospective tenants.
- Slower growth in rental prices as tenants grapple with affordability.
These national trends are reflected in Cardiff, where pricing your property competitively and aligning with seasonal demand are now more important than ever.
A return to realistic pricing
For landlords, it’s important to adjust expectations in line with these shifts. Outside the summer peak, tenants are far more price-sensitive, and rental values have largely stabilised.
“While the market is still healthy, we’re not seeing the same rent increases between tenancies that many landlords became accustomed to post-pandemic. Achieving strong returns now requires a realistic approach to pricing and an understanding of the market’s seasonality,” says Nikki Lewis, CPS Homes’ Director of Operations.
In some instances, we’re even having to reduce the asking price to less than what the current tenants are paying. This highlights the importance of getting the price right from the outset. Overpricing a property when it first goes on the market can lead to it sitting empty longer than necessary, as the initial listing period is when it receives the most exposure.
That said, Cardiff remains a vibrant city with consistently strong demand, particularly for well-maintained properties in sought-after locations. Landlords who focus on presenting their properties in the best possible condition and setting realistic rents are continuing to let successfully.
Practical tips for landlords
The return of lettings seasonality provides opportunities for landlords who are willing to adapt. Here are a few practical tips to ensure you remain competitive:
- Box clever with tenancy lengths: Aim to align your contract periods with the summer rush. For example, consider a tenancy length that ends in the summer months, when demand is highest. This will position your property to attract a wider pool of tenants at a time when competition drives better rents and shorter void periods.
- Make repairs count: Ensure your property is in the best possible condition for viewings. Sometimes this means going above and beyond what you’d ideally do – for example, bleaching grouting or replacing seals, even if the discolouration was caused by the current tenant. These small improvements can make a big difference in creating a positive impression and securing a new tenancy quickly.
- Be realistic with pricing: Outside the peak summer season, tenants are more price-sensitive. Setting a competitive rent, even if it’s not quite as high as you’d like, can mean the difference between a short void period and a property sitting empty for weeks.
How we can help
At CPS Homes, we stay on top of market trends to ensure our landlords receive expert advice tailored to their properties. Whether you’re looking to price competitively, attract the right tenants, or prepare for the summer rush, we’re here to guide you every step of the way.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
