By Rob Price, Owner, Belvoir Cardiff
Letting a property in Cardiff is more than just a smart financial move — it’s an opportunity to tap into one of the UK’s most stable and in-demand rental markets. With a growing population, expanding employment sectors, and a healthy balance of students, professionals and families, Cardiff continues to attract buy-to-let investors from across the UK and beyond.
But to make the most of this opportunity, landlords need to be aware of the specific legal, local, and logistical factors involved in letting a property in the Welsh capital.
I’m Rob Price, owner of Belvoir Cardiff, and in this guide, I’ll walk you through everything landlords need to know in 2025 — from understanding local tenant demand and rental yields to ensuring you’re compliant with the latest Welsh housing legislation.
Thinking of letting in Cardiff? Here’s what you need to know
Cardiff offers a diverse and robust rental market in 2025, fuelled by a strong student population, excellent universities, public sector employment, and consistent inward investment.
According to Rightmove’s House Price Index (Q1 2025), average rental prices across Cardiff have increased by 6.8% year-on-year, reflecting continued demand across all property types. Meanwhile, Zoopla’s Rental Index shows a rise in searches from out-of-area tenants seeking affordability compared to Bristol and London.
But high demand doesn’t always guarantee easy lettings. Regulations in Wales are evolving quickly, and choosing the right location, property type, and letting strategy can make all the difference.
What’s driving rental demand in Cardiff in 2025?
Let’s look at why Cardiff remains such a strong market for landlords.
Key tenant groups include:
- Students: Cardiff is home to Cardiff University, Cardiff Metropolitan, and University of South Wales students.
- Young professionals: Working in media (BBC, ITV), finance, tech, and the growing life sciences sector.
- NHS staff: Including those based at the University Hospital of Wales.
- Corporate tenants: Short-term lets and serviced accommodation demand is up in Pontcanna, Cardiff Bay, and city centre.
- Relocating families: Moving from England for a better quality of life.
Top performing areas by demand:
- Cathays & Roath: Popular student and young professional zones.
- Pontcanna & Canton: Ideal for professionals and young families.
- Llanishen & Whitchurch: Family homes with access to schools.
- Cardiff Bay: Apartments for professionals and corporate lets.
- Grangetown: Up-and-coming with a mix of houses and flats.
With void periods averaging under two weeks, especially for well-presented 2-3 bed homes and HMO student properties, Cardiff stands out for consistency and growth.
Where and what should you let in Cardiff for best returns?
Matching your investment to local demand is key to long-term success. Here’s a breakdown of what works well in Cardiff in 2025:
1. HMOs (Houses in Multiple Occupation)
- Best locations: Cathays, Roath, Gabalfa
- Target tenants: Students, young professionals
- Pros: Higher rental yields (often 8%+)
- Cons: Higher management and stricter licensing
2. 2–3 bed terraced or semi-detached homes
- Best locations: Canton, Splott, Llanishen
- Target tenants: Families and couples
- Pros: Steady demand, longer tenancies
3. 1–2 bed flats
- Best locations: Cardiff Bay, city centre
- Target tenants: Professionals, relocators
- Pros: Shorter voids, ease of management
4. Larger family homes
- Best locations: Whitchurch, Cyncoed, Radyr
- Target tenants: Executive relocations, long-term tenants
- Pros: Strong capital growth, quality tenants
As of Q2 2025, average monthly rents in Cardiff are:
- 1-bed flat: £725
- 2-bed house: £980
- 3-bed house: £1225
- 4-bed HMO: £1700+ (depending on spec and licensing)
Legal essentials: what landlords in Cardiff must do to stay compliant
One of the biggest differences when letting in Cardiff compared to England is the legal framework. Since December 2022, all landlords in Wales must comply with the Renting Homes (Wales) Act 2016, which significantly changes how tenancies work.
Here are the key legal obligations for 2025:
1. Rent Smart Wales registration and licensing
All landlords must:
- Register with Rent Smart Wales
- Either be licensed themselves or appoint a licensed agent (like Belvoir Cardiff) to manage the property
2. Occupation contracts replace tenancy agreements
The standardised agreement now used is called an occupation contract, replacing ASTs and other agreements.
3. Fitness for human habitation (FFHH)
All properties must meet specific standards, including:
- Working smoke and heat alarms
- Carbon monoxide detectors
- Electrical safety checks (EICR every 5 years)
- Adequate ventilation, security, water and sanitation
4. Deposit protection
Landlords must protect the deposit in an approved scheme within 30 days and provide the correct documentation.
5. Clear notice periods and possession rules
The act simplifies eviction notices but also extends protection for tenants. For example, six months’ notice is generally required to regain possession (unless specific grounds apply).
Failure to comply can result in fixed penalties, court action, or a ban on letting. That’s why it’s essential to either be fully up to speed or work with a regulated agent who is.
Should you manage your property or hire a letting agent?
This is one of the biggest questions we get from landlords — and the answer depends on your time, experience and appetite for risk.
Let-only might suit you if:
- You live locally and can carry out inspections and repairs
- You’re confident in your understanding of Welsh law
- You have time to manage tenant relationships, arrears, and emergencies
Fully managed is ideal if:
- You live outside Cardiff or travel often
- You want peace of mind and legal protection
- You prefer a passive income, not a second job
At Belvoir Cardiff, our fully managed service includes:
- Marketing and tenant sourcing
- Rent Smart Wales compliance
- Occupation contract setup and signing
- Deposit protection
- Routine inspections
- 24/7 maintenance coordination
- Rent collection and arrears handling
- Legal notices and renewals
Explore our landlord services to see what level of support fits you best.
Landlord pitfalls to avoid in Cardiff’s competitive market
Whether you’re a first-time landlord or growing your portfolio, here are some mistakes we help landlords avoid:
1. Ignoring Rent Smart Wales
Failure to register or license can result in fines and bans.
2. Overpricing your property
This leads to longer voids. Price based on data, not emotion.
3. Poor tenant referencing
Cutting corners can lead to rent arrears, damage and legal battles.
4. Not maintaining the property properly
Tenants leave faster, and you could breach FFHH standards.
5. Failing to protect the deposit correctly
You risk losing the right to serve notice and face compensation claims.
6. Not keeping records or inspection notes
A clear audit trail protects you if disputes arise.
Let with confidence through Belvoir Cardiff
We’ve supported hundreds of Cardiff landlords over the years, and our goal remains simple: to protect your property, maximise your return, and take the stress out of letting.
Why landlords choose us:
- Local team based in Cardiff, not a call centre
- Licensed with Rent Smart Wales and up to date on Welsh legislation
- Tailored support for HMOs, professionals, students, and family lets
- Clear communication and transparent fees
- Fully managed and let-only options
Whether you’re letting for the first time or growing a portfolio, we’re here to help.
Request a free rental valuation or contact us to talk through your property.
At Belvoir Cardiff, we believe letting should be legally sound, professionally managed, and built around your goals. Let’s make your property investment work harder in 2025.
