Welsh housing market outperforming England, Bank of England tells Cardiff landlords
Wales and the other devolved nations are demonstrating a stronger property market than England, according to the Bank of England's Deputy Agent in Wales.
Ian Derrick, addressing the Cardiff Landlord Forum, told landlords conditions in the Welsh private rented sector remain relatively positive despite wider economic uncertainty
He said property prices are showing signs of slowing in England - particularly in London - while the devolved nations are holding up more strongly. With rents predicted to rise in the coming months as the Renters' Rights Act takes effect in England, landlords in Wales may find demand for rental properties remains robust, supporting yields and occupancy levels.
Derrick acknowledged that global events - including the ongoing conflict in Gaza — have caused some market volatility. However, he was clear that nothing currently compares to the sharp impact of the Ukraine war in 2022, which drove both inflation and interest rates significantly higher.
He noted that inflation has risen to 3.3%, with energy prices expected to rise further later this year, and that businesses are pulling back on hiring, with increases to the National Living Wage and National Insurance contributions making recruitment harder to justify. For landlords, this broader economic picture is worth monitoring – as squeezed household budgets can affect tenants' ability to meet rental payments.
Minimise voids
The forum also heard from Optimo, a student let cleaning and management company, which offered practical hints and tips on preparing for the summer student changeover - including how to minimise voids and keep changeover costs down.
Douglas Haig, our non-executive director for Wales and chair of the Cardiff Landlord Forum, closed with updates on the Renters' Rights Act and its application to Wales, reminding landlords to serve their Statement of Variation. He also outlined what a Plaid Cymru government is likely to mean for landlords in Wales, and provided updates on local developments including the Kingsway redevelopment and new rail connectivity to Cardiff Bay.
More than 50 landlords attended - many of them new faces — with the forum, hosted by Cardiff Council at its County Hall headquarters in Cardiff Bay, having now moved to a quarterly timetable.
The next meeting takes place on Wednesday 21st October. Click here for updates on this event.
