Cardiff’s property market remains robust:
House Prices: The average property price in Cardiff rose to £274,000 in January 2025, marking a 5.8% annual increase. Flats saw the highest growth at 7.9%, while detached homes averaged £522,000.
Rental Market: Private rents increased by 9.2% year-on-year, reaching an average of £1,093 per month. This reflects strong demand but also highlights affordability challenges for tenants.
Legal & General has cemented its role as Cardiff’s largest investor, contributing £1 billion to urban regeneration projects that are reshaping the city. Recent highlights include:
Central Quay Build-to-Rent Scheme: A £200 million investment delivering 715 waterfront apartments with modern amenities such as a gym, gardens, and retail spaces. This development aims to provide high-quality rental options in the heart of Cardiff.
The Interchange Building: A £140 million Grade A office space alongside residential units and a new transport hub.
Government Hub: £117 million invested in a facility housing over 4,000 civil servants, boosting local employment opportunities.
These investments are driving economic growth, creating vibrant communities, and positioning Cardiff as a leading city for living and working in the UK.
2025 is shaping up to be a mixed year for first-time buyers (FTBs) in Cardiff. While challenges such as rising house prices persist, there are several positive developments that could make entering the market more accessible:
Help to Buy Wales Extension: The Welsh Government has extended the Help to Buy scheme until September 2026. This initiative allows buyers to purchase new-build homes with just a 5% deposit, supported by an equity loan of up to 20%. With mortgage rates easing, this scheme continues to be a vital tool for FTBs, accounting for over 75% of purchases under Help to Buy.
Lower Mortgage Rates: The Bank of England’s recent decision to lower the base rate has provided some relief for buyers, improving affordability and reducing monthly repayments. This is expected to encourage more FTBs to enter the market.
Green Mortgage Opportunities: Eco-conscious buyers can benefit from green mortgage schemes, which offer reduced interest rates for energy-efficient properties. Developments like Sant Silian in Cardiff provide homes eligible for these incentives, combining long-term savings with environmental benefits.
