Cardiff's rental market: two worlds are becoming one
“Too long, didn’t read”? In short…
Over the last few months, I've written about the increased competition facing Cardiff's professional landlords and, more recently, its student landlords.
The message in both articles was fairly similar: Cardiff remains a strong rental market, but tenants have more choice, particularly as more large, purpose-built rental developments appear across the city.
But what I think is becoming increasingly interesting is that the distinction between student accommodation and professional accommodation isn't as clearly defined as it used to be.
Some of these newer developments are targeting students, graduates and working professionals alike. They're offering a different way of living, potentially changing not just where people choose to rent, but when they make that decision and who they choose to live with.
Two different markets, but increasingly the same conversation
Back in June, I wrote The Cardiff rental market is still strong, but less forgiving. I looked at Cardiff's growing Build to Rent sector, with developments offering modern apartments, gyms, concierge services, communal workspaces and various other facilities aimed at attracting professionals.
Then, at the end of September, I wrote Cardiff's student rental market is changing – is your property ready?. That article focused on purpose-built student accommodation (PBSA) and the increasing competition facing traditional student houses in Cathays, Roath and Heath.
I treated them as separate subjects because that's largely how we've always viewed the rental market. Students rent student accommodation, professionals rent professional accommodation, and landlords generally know which group they're targeting.
But I think that distinction is becoming less useful.
Not all purpose-built accommodation is exclusively for students, and not all of these large developments are exclusively for professionals. There's a growing middle ground, particularly with what's known as co-living.
And that means the same development can potentially be competing with a student HMO in Cathays, a professional house share in Roath and a privately owned one-bedroom flat in the city centre.
Why share a kitchen with strangers when you could have your own?
Take Fitz & Knox on Fitzalan Place as an example. It's a relatively new co-living development offering self-contained studios alongside communal facilities including a gym, spa, cinema room, co-working spaces and social areas.
What's interesting is that it's actively marketed to both students and people who are working. It's not conventional PBSA, and that’s really my point. It's aimed at people at different stages of their lives who may want similar things from their accommodation.
And when you look at what they're selling, I can certainly understand the attraction. You have your own private space, including your own kitchen and bathroom, but can still socialise with other residents and enjoy shared facilities whenever you want.
Think about the alternative for somebody considering a traditional house share. There's the possibility of arguments over cleaning, somebody helping themselves to your milk, dishes left in the sink, different lifestyles and the general complications of sharing a home with people who may have started out as friends but don't necessarily make particularly good housemates.
Then there's the financial side. Often, sharing a property means taking on responsibilities that extend beyond your own bedroom, including the consequences of another occupant not paying their share of the rent.
Suddenly, the appeal of having your own space – while still enjoying the social side of communal living – becomes fairly obvious.
There are other attractions too. A director of one Build to Rent development recently told me that they weren't particularly interested in tying residents into lengthy contracts. Instead, they were happy to be flexible, even to the point of not requiring a security deposit.
I thought their reasoning was interesting. Rather than holding deposits to cover potential damage, they'd prefer to focus on keeping residents happy and generating positive online reviews. The thinking is that a good reputation will help keep the development at – or close to – full occupancy for years to come.
This shows how operators are thinking about making renting more convenient and attractive. They're not simply competing on the quality of their accommodation. They're trying to remove some of the frustrations traditionally associated with renting.
So, what's actually available in Cardiff?
It's easy to talk about new developments without necessarily appreciating what they're offering or how much they're charging, so here are just a few examples being advertised at the time of writing:
- Bridge Street Exchange – Purpose-built student accommodation in the city centre, advertising en-suite rooms from £192 per week and self-contained studios from £229 per week. Bills are included, along with access to facilities including a gym, study rooms, games room and karaoke room.
- The Fitzalan – Another student development, on Newport Road. Self-contained studios are being advertised from £195 per week, with bills included and facilities such as a cinema room, gym and communal spaces.
- Fitz & Knox – The co-living development I've mentioned above, which markets to students and working residents alike. Studios are advertised from £999 per month, with essential bills and communal facilities included, subject to conditions.
- Wood Street House – A Build to Rent development at Central Square, offering studios from £1,085 per month. Residents have access to a gym, roof terrace, co-working areas and a 24-hour concierge service, with flexible tenancy arrangements advertised.
- The Copper Works – A Build to Rent development on Tyndall Street, with studios currently advertised from £1,105 per month. Facilities include a gym, co-working spaces, residents' lounge and a 22nd-floor Sky Lounge.
These are advertised starting prices, rather than achieved rents, and, naturally, the terms vary.
We're talking about a selection of buildings offering everything from individual en-suite student bedrooms to fully self-contained studios and apartments, often with an impressive range of shared facilities.
Some of the student accommodation operators are even offering cashback incentives to encourage bookings. In other words, these large developments aren't simply relying on their facilities and shiny new buildings to attract residents. They're actively competing for tenants too.
And, of course, I've only picked a handful of examples. There are plenty more across Cardiff.
But let's not forget what traditional rental properties offer
Before anybody concludes that the future involves everyone living in a tower block with a gym, I don't think that's the case at all. Plenty of renters don't want that lifestyle.
Some want a proper house with a garden. Some want more space than a studio can provide. Others prefer smaller buildings, quieter streets or the character of a traditional Cardiff property.
And, of course, there's the cost – though the difference between traditional housing and purpose-built accommodation is not what it used to be.
Having your own self-contained studio with a long list of facilities can be attractive, but it won't necessarily be affordable or offer the best value for everybody. Sharing a good house with friends can still work out considerably cheaper.
For students in particular, the traditional shared house remains a huge part of the university experience, and I don't see that disappearing.
But I do think landlords need to recognise that renters now have more genuine alternatives, and those alternatives can influence what they're prepared to accept.
Which brings me to something I've been thinking about in relation to this year's student lettings season.
If I were a first-year student in Cardiff today...
Imagine I've arrived in Cardiff this September to begin university.
It's now October. I've only been here a few weeks, I'm probably just getting over Freshers' flu, I've barely got to grips with my course and I'm still getting to know the people around me.
I'm living in halls with seven other students. We get on well enough, and somebody has already suggested that we should all find a house together for next year. In fact, there's a bit of urgency about it.
Apparently, the best student houses go quickly, everybody else is starting to look, and we really ought to get something sorted before they're all gone.
Except we're talking about a house we wouldn't move into until September 2027, almost eleven months away.
I've known these people for a matter of weeks, and I'm being asked to make a fairly significant financial commitment with them.
What if I realise six months from now that we don't actually get on that well? What if somebody decides to leave university? What if my circumstances change, or I simply decide that I'd rather live with different people?
And, perhaps most importantly, why do I need to make that decision right now?
Historically, students may have felt they had little choice but to take the plunge early. When CPS Homes opened in 2000, the student lettings calendar looked quite different. Over the years, the rush to secure the next academic year's accommodation has crept earlier and earlier. For many students, searching for next year's house has become part of the first term of university.
But here's where the growing choice of accommodation could change things.
If I can rent an individual room in a purpose-built development, or perhaps choose a self-contained studio without needing seven other people to commit alongside me, then I have another option.
I might decide I'd rather spend a bit more and have my own space. I might decide to wait until I've properly settled into university life before choosing where to live next year.
I'm not necessarily saying I'd make either of those choices, but I wouldn't feel quite so dependent on finding a group and signing for a traditional student house immediately.
Could the traditional student lettings rush change?
I think it could, at least to some extent.
To be clear, I don't expect students to suddenly stop looking for houses in October or November. Plenty of established friendship groups will still want to secure a good house together, and some of the most desirable properties will undoubtedly continue to let early.
There's also no guarantee that waiting until later will leave every option available. Purpose-built accommodation has its own booking cycles and availability pressures.
But if a growing proportion of students feel they have alternatives, the pressure to commit so far in advance could gradually ease. And that has implications for traditional student landlords.
Some landlords may find that students take longer to make decisions. Some groups might form later. Others may decide that an individual room or studio suits them better than committing to a joint contract.
None of that necessarily means fewer students wanting to live in traditional HMOs. It may simply mean that their behaviour changes, and that we can't rely on the same letting patterns continuing indefinitely.
It's something we'll be paying close attention to at CPS Homes, particularly as we head into the 2027–2028 student lettings season.
What does all this mean for Cardiff landlords?
Whether you're letting a student house, a professional house share or an apartment, I think the overall message is the same: the competition for your next tenant may be much broader than you realise.
A student considering your six-bedroom Cathays house might also be looking at individual rooms in PBSA or a self-contained studio.
A young professional viewing your city-centre flat might also be comparing it with a large Build to Rent development offering a gym, concierge service and communal workspaces.
And somebody looking for a professional house share might decide they'd rather spend a little more to have their own space.
That doesn't mean those alternatives will win. Far from it. What it means is that landlords and agents need to understand the full range of choices available to prospective tenants, rather than just comparing properties with similar properties on the next street.
It's something we spend a lot of time doing at CPS Homes, even if landlords don't necessarily see everything that happens behind the scenes. We're looking at what tenants are responding to, how competing properties are being presented, what rents are being achieved and why some homes are attracting more interest than others.
Sometimes that means recommending a small improvement or a better presentation of the property. Sometimes it means reviewing the marketing or the asking rent. And sometimes it means reassuring a landlord that their property compares very favourably and there's no reason to change anything.
The important thing is that those decisions are informed by what's actually happening in the market, not simply what happened last year.
I still see plenty of reasons to be positive
I wouldn't want anybody to finish reading this article thinking traditional Cardiff landlords are somehow being pushed out of the market, because they're not.
Cardiff still has a substantial student population, a large professional rental market and strong demand for good-quality homes.
Traditional private landlords also offer something that large corporate developments can't always replicate: variety. Different types of properties, locations, layouts, outdoor spaces and, often, better value.
But the market is evolving, and renters are being presented with options that simply didn't exist on this scale a decade ago. I think that's healthy in many respects. Competition should encourage better accommodation, better service and a better understanding of what tenants actually want.
For landlords, the objective shouldn't be to recreate a purpose-built development inside a traditional terraced house. It should be to make sure their property remains an attractive choice for the people they're trying to reach.
Cardiff is still a very good city in which to own a rental property. We just need to make sure we're keeping pace with the city it's becoming.
Got a question about how these changes might affect your rental property? I'm always happy to help. You can email me at nikki.lewis@cpshomes.co.uk.
For straightforward landlord tips, property updates and practical advice, follow me 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.
