Cardiff’s rental market continues to show resilience, with new figures revealing steady rent growth across the city despite wider economic pressures and signs of a more measured market emerging.
The latest data from the Office for National Statistics (ONS) shows average private rents in Cardiff increased by 4.8% over the past year, with strong demand for quality rental homes continuing across many parts of the city. However, estate agents are also reporting early signs of the market becoming less intense compared with the peak activity seen during 2022.
Thomas H Wood, the independent Cardiff estate agent with offices in Whitchurch and Radyr, says landlords still have reasons to remain confident, but the importance of pricing strategy, presentation and local market knowledge is becoming increasingly important as conditions evolve.
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, average rents rose from £792 to £830 over the same period, while the UK average increased to £1,377.
Terraced homes in Cardiff recorded some of the strongest rental growth, with average rents increasing by 5.6%, while flats and maisonettes rose by 3.7%. Current 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
The latest figures arrive against a backdrop of wider economic uncertainty, with mortgage rates edging upwards and landlords continuing to navigate ongoing legislative reforms across Wales and England. According to Rightmove’s latest buy-to-let mortgage tracker, borrowing costs have increased following recent global uncertainty, while the Bank of England recently held interest rates at 3.75%.
Despite these pressures, Cardiff’s rental market continues to benefit from healthy tenant demand and strong rental yields, although there are signs that activity is beginning to cool compared with the peak levels seen during 2022.
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.”
Thomas H Wood says landlords are increasingly focusing on pricing strategy, presentation and understanding local demand patterns to remain competitive as market conditions evolve. Different parts of Cardiff continue to perform differently depending on transport links, schools and tenant demand.
The lettings agency continues to monitor market trends closely and is encouraging landlords to seek professional advice to help navigate changing conditions and maximise returns from their properties.
