NEWS: Top 3 Postcodes for Buy-To-Let in Wales

The Welsh housing market is leading the way in growth of housing prices, and this demand is spilling into the rental market.

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As of August 2023, house prices in Wales had fallen just 0.1% year on year, which compares to a massive 1.4% drop for London comparatively. Source: Government Index.

And while London is typically seen as a rental market hotspot, popular Welsh towns are presenting themselves as competitive options for rental yeild and property price stability - without the sky-high price barrier.

And recent research by molo reveals the Central Valleys in Wales to be the highest yeilding rental area in the whole of England and Wales, at 7.96% gross yeild, with Swansea coming in an number 4 - beating out several London hotspots.

Cardiff, Swansea, the Central Valleys and Newport all rank amoung the best places to buy in Wales. And this is good news for prospective landlords, as demand for living in these areas are high.

Here are the locations in Wales which see the best rental yeilds for landlords:

Cardiff

Boasting vibrant city life and strong Welsh heritage, the Welsh Capital is a favorite of landlords and renters alike. A busy city center with rail links for taking Bristolian commuters accross the river in 56 minutes, it’s no surprise that these locations are becoming hotspots for the rental markets.

Central Valleys

The LD postcode area in Wales offers stunning natural scenery, strong community spirit, and excellent outdoor activities, making it a desirable and peaceful place to live.

Swansea

Swansea ranked highly in rental returns for 2023 as well.

Like both Cardiff and Newport, the location of Swansea is optimal for commuters looking for a cheaper rental price than they would get in a busier city.

Included in this postcode is Swansea University Bay Campus, so landlords looking to break into the student market will be buying a property in proximity to the uni. With new students starting year-on-year, the supply of tenants will be ongoing so this investment proffers a very good yield.

Interested in getting on the Welsh property ladder? Our Welsh team are well-established in East Tyndall Street, Cardiff and know the best lenders who can deliver your property finance solutions.

Call Clifton Private Finance Cardiff 

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