While it’s not usually the peak period for sales and lettings, this summer could have some surprises in store.
In this month’s blog we provide an update on what’s happening in the market and the trends to be aware of, so you can make the most of buying, selling, renting, or letting over the summer months.
What’s happening in the rental market?
While Zoopla’s quarterly rental market report reveals that rental market conditions are improving, there still remains an imbalance in supply and demand, resulting in a continued growing pressure on rents.
The latest data from the Office for National Statistics shows that rents are increasing at their lowest rate for 3.5 years. However, this is more a result of worsening rental affordability than an improvement of the market. The average monthly private rent in Cardiff rose to £1,119 in May, with rents ranging from £867 for a one-bedroom property to £1,632 for a home with four or more bedrooms.
The average letting agent now has 13 homes for rent, rising from 10 in 2023, but 22% below the pre-pandemic average. The private rental market needs more supply to increase choice and to aid renters on lower-to-middle incomes who have struggled to keep up with rent increases over the last few years.
How are landlords doing?
The Renting Homes (Wales) Act 2016 came into force in December 2022 to simplify the rules for renting, replace traditional tenancy agreements with occupation contracts and introducing new responsibilities for both landlords and contract-holders (tenants). Landlords and letting agents must register themselves and their properties with Rent Smart Wales and comply with their obligations.
The Welsh Government’s latest report on the impact and benefits of the Act revealed 19% of landlords and managing agents agreed that the Act is currently having a positive impact on how they rent and manage their properties. This is a significant increase from the beginning of the Act’s introduction.
What price can I expect my house to sell for?
House prices in Cardiff over the last year were predominantly 3% up on the previous year. The average house price in Cardiff has fallen since the winter, standing at £273,000 in April, but despite this, the city still has the third highest average house price in Wales.
Detached properties sold for an average of £524,000, while semi-detached properties were typically around £321,000. Terraced homes averaged £257,000, with flats and maisonettes selling on average for £167,000.
At Thomas H Wood, we tap into the changes and trends in the market to provide high quality advice to buyers, sellers and renters in Whitchurch, Radyr and the wider Cardiff area. With our help, you can find the right property at the right time. Call us on 02920 626252 or visit https://thomashwood.com/.