The Cardiff rental market is still strong, but less forgiving
A couple of years ago, Cardiff landlords could put a good property on the market and expect strong interest almost straight away. In some cases, even ambitious rents were achieved because demand was high, there weren’t enough homes available, and tenants had fewer options.
That market has changed somewhat since then. Rents aren’t collapsing, and Cardiff is still a strong rental market – with individual private landlords still providing the majority of rental homes across the city (though they face new competition: see later) – but the market isn’t as forgiving as it was in the immediate post-Covid period.
Tenants have more choice than they did. Rental growth has softened and more listings are being reduced. The timing, presentation and launch price of a property now matter more than they did a couple of years ago.
Tenants are comparing more carefully
When tenants have limited choice, they move quickly. But when they have more choice, they compare a variety of things: price, condition, photos, furniture, location, whether pets are considered or broadband is included, and whether the property feels modern, convenient and easy to live.
That’s where the market has become more competitive. It’s also where Cardiff’s growing build-to-rent sector becomes relevant.
Build-to-rent is now part of the comparison
For many years, individual private landlords have been the backbone of Cardiff’s rental market. Whether it’s a one-bedroom flat in Roath, a two-bedroom apartment in the city centre, a family home in Canton or a student house in Cathays, traditional private landlords have provided the majority of homes available to tenants across the city.
But over the last few years, Cardiff has seen more large, purpose-built rental developments appear. These are often owned by institutional investors or large corporate landlords, and they’re not just aimed at students. Many are targeting young professionals who want a more “hotel-style” rental experience.
Gramercy Tower, PLATFORM_, The Copper Works, Wood Street House, Anchor Works, Verse and Fitz & Knox are all examples of this more professional, amenity-led rental offer now competing for Cardiff tenants.
They’re not just advertising flats. They’re advertising a lifestyle. Many promote features such as concierge services, gyms, co-working spaces, roof terraces, parcel storage, high-speed Wi-Fi, pet-friendly policies, residents’ lounges, on-site maintenance and social spaces. Some are also offering incentives, including rent-free periods on selected units.
And the pricing isn’t always as far away from the traditional private rental market as some landlords might assume. Recent examples show one-bedroom apartments being advertised from around £980pcm at Gramercy Tower, from around £1,110pcm at PLATFORM_ and The Copper Works, and from around £1,250pcm at Wood Street House. Two-bedroom examples have also been advertised from around £1,330pcm to £1,535pcm, depending on the building and unit. When those rents are being compared against privately owned city-centre flats, especially where incentives such as a rent-free month are being offered, the overlap becomes much more obvious.
There’s more supply in the pipeline too, particularly around Cardiff Central and Central Quay.
For some tenants, they’re attractive, as they can live, work, train, relax and sleep under one roof. Not every tenant wants that, but plenty do.
This won’t affect every landlord in the same way
Not every private landlord is now in direct competition with these developments, but there is overlap.
If a landlord owns a modern one or two-bedroom apartment in or near the city centre, the comparison becomes more direct. A tenant looking at a privately owned flat at £1,200pcm may also be looking at a purpose-built rental apartment with a gym, Wi-Fi, concierge, roof terrace, co-working space, pet-friendly policy and possibly a rent-free incentive.
That doesn’t mean the private flat can’t compete, but it does mean the rent, presentation and marketing need to make sense alongside what else is available.
It’s about realism, not panic
We don’t want landlords to read this and think their property will suddenly sit empty the next time it’s available to rent.
Good properties in good locations are still letting. Well-presented homes with sensible rents continue to attract interest.
But landlords now need to be more realistic and more aware of the market they’re launching into. That means carefully considering:
- the launch price
- the time of year the property becomes available (you typically can’t dictate this, but there are peaks and troughs to demand in Cardiff each year, and the best rents are achieved during the peaks)
- how much competing stock is available nearby
- the condition and presentation of the property
- the quality of the photos and marketing
- whether small improvements could help the property stand out
- how the property compares with nearby alternatives
Sometimes the right advice will be to adjust the rent, or it may be to improve the presentation. At other times, it may be to hold firm because the property is priced well and the competition is limited. The key is knowing the difference.
Where private landlords can still compete strongly
Private landlords shouldn’t assume build-to-rent has all the advantages. Many tenants still prefer traditional rental homes with more character, or a house rather than an apartment. Others want outdoor space or a quieter street. Some need to be in a specific school catchment area, or simply don’t want to live in a large managed block, no matter how many amenities it has.
The opportunity for private landlords isn’t to try to become a corporate build-to-rent operator. It’s to understand where their property sits in the market and make sure it’s priced, presented and marketed accordingly.
How CPS Homes can help
We’re watching these shifts closely because they affect real landlords making real decisions.
If you own a rental property in Cardiff and want to understand how it compares with current market competition, we can help you sense-check the rent, presentation and timing before it goes to market.
That doesn’t always mean reducing the rent. Sometimes it means improving the offering, making small changes, refreshing the presentation or simply choosing the right launch strategy.
The important thing is getting the right local advice before going to market.
Free rent reviews and market appraisals
Find out what your Cardiff property could be achieving and whether your current tenancy structure is working in your favour.
No obligation, just honest advice.
Like what you’ve read? Keep up with our latest landlord tips and updates by following Nik, our Director of Operations, over at The Cardiff Letting Agent on Instagram.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
