What’s happening in Cardiff’s rental property right now?

The latest figures from the Office for National Statistics (ONS) show that Cardiff’s rental market continues to grow steadily, with rents increasing across most property types and bedroom sizes over the past year.

For landlords across Cardiff, the latest data paints a picture of a market that remains active and resilient, although there are signs that the landscape is beginning to shift.

The average monthly private rent in Cardiff reached £1,157 in March 2026, up from £1,104 in March 2025, representing a 4.8% annual increase. Across Wales, the average monthly rent rose from £792 to £830 over the same period, while the UK average increased to £1,377.

By property type, terraced homes in Cardiff saw some of the strongest rental growth, with average rents rising by 5.6%. Flats and maisonettes increased by 3.7%.

Average monthly rents in Cardiff now stand at:

• One-bedroom properties: £894
• Two-bedroom properties: £1,068
• Three-bedroom properties: £1,186
• Four-bedroom properties: £1,680

Breaking this down by property type:

• Flats and maisonettes: £980
• Terraced properties: £1,156
• Semi-detached properties: £1,163
• Detached properties: £1,491

A window that may not stay open for long

While tenant demand remains healthy, the wider economic backdrop is beginning to influence landlord confidence and future investment decisions.

Rightmove’s latest buy-to-let mortgage tracker has shown mortgage rates edging upwards following recent global uncertainty and the impact of the conflict in Iran. At the same time, the Bank of England held interest rates at 3.75% on Thursday 30 April, despite earlier expectations that there could be further cuts later this year.

Although it’s still early days, higher borrowing costs could place additional pressure on landlord investors and potentially slow the pace of new investment entering the market.

However, there are still some encouraging signs for landlords. Data from UK Finance showed an increase in buy-to-let lending activity at the start of the year, with the number of buy-to-let loans up 14% compared with the start of 2025. Buy-to-let remortgages were also up 18% year-on-year.

A changing picture beneath the surface

After a period of strong performance, the latest figures suggest the market is beginning to lose some momentum.

The average rental property is now receiving around eight enquiries, compared with 11 a year ago and a peak of 29 enquiries seen during 2022.

There are also currently no clear signs nationally of landlords exiting the market ahead of the proposed Renters’ Rights changes. However, in Wales, many of these shifts are already well established following the introduction of the Renting Homes (Wales) Act 2022.

What England is now starting to experience is, in many ways, a reflection of changes that landlords in Wales have been dealing with for some time. The impact locally has already been felt, with a number of landlords choosing to exit the market, and that trend continuing in some areas.

Many of the measures now being introduced in England closely mirror those brought in under Welsh legislation, alongside some additional reforms. While the changes in England are being described as significant, they are largely aligned with the framework already in place in Wales.

Looking ahead, further updates are due to come into force in Wales from 1 June 2026. According to Rent Smart Wales, it will become unlawful for landlords, or anyone acting on their behalf, to discriminate against applicants because they have children or receive benefits.

Despite these ongoing changes, Office for National Statistics data continues to point towards strong rental income and improving yields for many landlords. As always, much will depend on the individual property, financing arrangements and local area.

Of course, averages only tell part of the story. Different parts of Cardiff continue to perform differently depending on local demand, transport links, schools and the type of tenant the property appeals to. Overall, Cardiff continues to offer a resilient and active market for landlords.

What is becoming increasingly important is getting the fundamentals right. Pricing strategy, in particular, plays a key role not only in maintaining yields, but also in ensuring properties are positioned correctly to attract the right level of interest. Much of what we are seeing comes down to managing expectations and adapting to current market conditions.

John Wood, Director at Thomas H Wood, said:

“There’s nothing in this report that should cause unnecessary concern for landlords. From what we’re seeing on the ground, good properties are still letting, and there’s still plenty of activity in the market. What is changing, though, is how you go about getting the best results.

“There is still strong demand for rental properties across Cardiff, but there are early signs of a cooling market. That means landlords have an opportunity to review their positioning and make sure they are adapting to current market conditions.

“Getting your launch price right from the outset has never been more important, particularly with a more measured outlook around interest rates and wider market confidence.

“Every landlord’s position is different, which is why local advice matters more than ever. If you already let properties in Cardiff, or you’re considering becoming a landlord, pick up the phone and speak to our lettings team. We can give you live insight into what we’re seeing on the ground across the Cardiff market and help you make informed decisions for your property.”

At Thomas H Wood, we continue to monitor the latest market trends closely to help landlords navigate changing conditions confidently. Whether you already have an established portfolio or are considering your first investment property in Cardiff, our experienced lettings team can provide tailored advice based on real-time local market activity.

Call us on 02920 626252 or pop into our Whitchurch or Radyr branches to speak with the team.

Source: Office for National Statistics rental data and Rightmove Rental Price Tracker.