Local property market information for the serious investor

Slowing Cardiff Property Market? Yes and No!

Doom and Gloom for Cardiff Bay Property Market?

My thoughts to the landlords and homeowners of Cardiff…

The tightrope of being a Cardiff buy-to-let landlord is a balancing act many do well at. Talking to several Cardiff landlords, they are very conscious of their tenants’ capacity and ability to pay the rent and their own need to raise rents on their rental properties (as Government figure shows ‘real pay’ has dropped 1% in the last six months). Evidence does however suggest many landlords feel more assured than they were in the spring about pursuing higher rents on their Cardiff buy-to-let properties.

During the summer months, historic evidence suggests that the rents new tenants have had to pay on move in have increased. June/July/August is a time when renters like to move, demand surges and the normal supply and demand seesaw mean tenants are normally prepared to pay more to secure the property they want to live in, in the place they want to be. This is particularly good news for Cardiff landlords as average Cardiff rents have been on a downward trend recently. So look at the figures here…

Rents in Cardiff on average for new tenants moving in have risen 0.8% for the month, taking overall annual Cardiff rents 1.3% higher for the year

However, several Cardiff landlords have expressed their apprehensions about a slowing of the housing market in Cardiff and I believe, based on this new evidence, they may be exaggerated.

Before we get the Champagne out, the other side of the coin to property investing is capital values (which will also be of interest to all the homeowners in Cardiff as well as the Cardiff buy-to-let landlords).  I believe the Cardiff property market has been trying to find some form of balance (one might even say equilibrium) since the New Year.  According to the Land Registry…

Property Values in Cardiff are 5.88% higher than they were 12 months ago, rising by 2.68% last month alone!

Yet, I would take those figures with a pinch of salt as they reflect the sales of Cardiff properties that took place in early Spring 2017 and now are only exchanging and completing during the summer months.

The reality is the number of properties that are on the market in Cardiff today has risen by 4.21% since the New Year and that will have a dampening effect on property value increases. As tenants have had less choice, buyers now have more choice … and that will temper Cardiff property prices as we head towards 2018.

Be you a homeowner or landlord, if you are planning to sell your Cardiff property in the short term, it’s important, especially with the rise in the number of properties on the market, that you realistically price your property when you bring it to the market.  It is so crucial as the short-term balance of the local property market see-saw slips more towards the buyer with the increase in the number of properties for sale. Everyone has access to every property on the market now through the likes of Rightmove and Zoopla and they will compare your home with other property like yours.

However, even with this uplift in the number of properties for sale in Cardiff, property prices will remain stable and strong in the medium to long term. This is because the number of properties on the market today is still way below the peak of summer of 2008, when there were 6,687 properties for sale compared to the current level of 2,623 (if you recall, prices dropped by nearly 20% in Credit Crunch years of ‘08 and ‘09).

Compared to 2008, today’s lower supply of Cardiff properties for sale will keep prices relatively high…and they will continue to stay at these levels for the medium to long term.

Less people are moving than a few years ago, meaning less property is for sale. Fewer properties for sale mean property prices remain relatively high and this is because of a number of underlying reasons. Firstly, buy-to-let landlords tend not sell their properties as often than owner-occupiers, consequently removing the property out of the housing market selling cycle. Secondly, Stamp Duty is much higher compared to 10 years ago (meaning it costs more to move). Next, there is a dearth of local authority rental housing so demand for private rented housing will remain high. Then we have the UK’s maturing owner occupier population, meaning these older people are less likely to move (compared to when they were younger). Another reason is the lack of new homes being built in the country (we need 240k houses a year to be built in the UK and we are currently only building 145k a year!) and finally, the new mortgage rules introduced in 2014 about how much a person can borrow on a mortgage has curtailed demand.

Some final thought’s before I go – to all the Cardiff homeowners that aren’t planning to sell – this talk of price changes is only on paper profit or loss. To those that are moving … most people that sell, are buyers as well, so as you might not get as much for yours, the one you will want to buy won’t be as much, (swings and roundabouts as Mum used to say!)

To all the Cardiff landlords – keep your eyes peeled – I have a feeling there may be some decent buy-to-let deals to be had in the coming months

Kate Gwinnutt

View more posts from this author
21 thoughts on “Slowing Cardiff Property Market? Yes and No!
  1. Pingback: cialis in walmart

  2. Pingback: how to administer cialis

  3. Pingback: no prescription viagra

  4. Pingback: viagra for sale on internet

  5. vardenafil tablets

    Thanks for your whole work on this website. My niece takes pleasure in working on research and it is simple to grasp why. We all notice all relating to the powerful ways you render vital tricks via your website and therefore welcome response from website visitors on this topic while our own simple princess is without question understanding so much. Take pleasure in the rest of the year. Your performing a wonderful job.

  6. propecia no rx

    I enjoy you because of all of the effort on this blog. Betty delights in carrying out internet research and it’s easy to see why. A lot of people hear all about the compelling form you convey both useful and interesting guidelines by means of the blog and attract contribution from other individuals about this area of interest and my child has been becoming educated a great deal. Enjoy the remaining portion of the new year. You’re carrying out a dazzling job.

  7. buy propecia

    Thank you for your entire labor on this web site. My mom really loves managing investigations and it is obvious why. My partner and i learn all regarding the lively tactic you present sensible things through your web site and in addition invigorate response from some others on the situation then our favorite princess is truly starting to learn a whole lot. Take advantage of the rest of the year. You have been doing a stunning job.

  8. generic ABILIFY

    I’m also commenting to let you be aware of of the brilliant discovery my child encountered checking the blog. She came to understand a lot of details, including how it is like to have a marvelous coaching character to get certain people completely comprehend a variety of complex issues. You actually did more than her desires. I appreciate you for coming up with such essential, dependable, edifying and cool guidance on that topic to Ethel.

  9. abilify prices

    I precisely needed to appreciate you once again. I am not sure the things that I might have handled in the absence of the entire pointers provided by you on such a problem. It had been a very frightening difficulty in my circumstances, however , looking at the skilled manner you processed that made me to jump over fulfillment. I am happier for this help and in addition hope you know what a great job you are getting into instructing others through the use of your site. I know that you have never encountered all of us.

  10. generic imipramine

    My spouse and i got really joyous that Jordan managed to do his reports through your precious recommendations he had through the web pages. It is now and again perplexing to just find yourself handing out secrets and techniques which people may have been selling. So we keep in mind we have got the writer to give thanks to for that. The most important illustrations you have made, the simple web site navigation, the relationships you will help to foster – it’s got many overwhelming, and it’s really leading our son in addition to the family know that the situation is exciting, which is rather mandatory. Thank you for everything!

  11. Pingback: cialis no prescription

  12. Pingback: viagra no prescription

  13. Pingback: viagra online pharmacy

  14. air jordans

    I and my friends have been checking the great information and facts located on your web blog and then quickly I got a horrible suspicion I had not thanked the blog owner for those strategies. These women were definitely consequently stimulated to study them and already have surely been taking pleasure in them. Thank you for truly being considerably accommodating and for finding variety of fine subject matter millions of individuals are really desperate to know about. Our own honest apologies for not expressing appreciation to you sooner.

  15. supreme new york

    I wanted to develop a message to thank you for all of the fabulous guides you are giving here. My considerable internet research has finally been paid with reliable know-how to write about with my neighbours. I would claim that most of us website visitors are very much lucky to be in a magnificent community with many lovely people with interesting tricks. I feel quite grateful to have come across your website and look forward to really more enjoyable moments reading here. Thanks once again for a lot of things.

  16. yeezy boost 500

    I have to express my appreciation for your generosity supporting those individuals that actually need guidance on this particular issue. Your personal dedication to getting the solution along became extremely invaluable and has truly encouraged some individuals just like me to realize their objectives. Your entire useful suggestions means a great deal to me and even more to my mates. Thanks a lot; from each one of us.

  17. pandora

    I together with my guys have already been examining the good ideas on the blog then unexpectedly developed an awful feeling I never thanked the site owner for them. These people ended up consequently glad to read through all of them and have definitely been taking advantage of those things. We appreciate you genuinely indeed helpful and then for having this sort of remarkable useful guides most people are really eager to discover. My sincere regret for not expressing appreciation to you sooner.

  18. golden goose

    I’m also commenting to make you understand of the wonderful encounter my wife’s girl developed viewing your blog. She picked up too many issues, with the inclusion of how it is like to possess a wonderful giving spirit to make most people without hassle grasp specific specialized topics. You really exceeded people’s expectations. I appreciate you for imparting these essential, trustworthy, revealing as well as unique tips about that topic to Julie.


Leave a Reply

Your email address will not be published. Required fields are marked *