Research by WebLetz a Cardiff Letting Agent has found that a third of the average Cardiff household income is needed to pay the rent.
The aim of the article is to explore how much of a typical Cardiff household income is absorbed by the cost of the average monthly rental in the Welsh Capital and ask the question is the current increase in rent sustainable? And is the rent bubble about to burst?
In today’s rental market we are seeing rental prices increase month on month across the UK with parts of London reporting such dramatic rent increase that up to 50% of the household income is needed to pay the rent. We are asking, how much longer can this trend continue before the price to rent a standard Cardiff property is no longer sustainable by the average Cardiff household income?
As a Cardiff letting agent and Cardiff property management company we like to record and study our own historical market data as well as trawling the internet we deem relevant to our business and we believe useful to our target audience across Wales. Our research suggests there are 3,273 properties for rent in Cardiff available (As of 7th November 2011) and 1,083 of those were listed in the last 14 days, with the average Cardiff rent equating to £908 per calendar month.
The average Cardiff rent can be broken down as follows:
- 1 bedroom property £505 per month
- 2 bed property £651 per calendar month
- 3 bedroom property £789 per month
- 4 bed property £1008 per calendar month
- 5 bedroom property £1303 per month
The number of Cardiff properties available to rent by price is:
- <£250 per calendar month 62 properties
- £250-£500 per month 507 properties
- £500-£1000 per calendar month 1,756 properties
- £1000-£2000 per month 832 properties
- £2000-£5000 per calendar month 109 properties
- £5000+ per month 7 properties
Cardiff Council estimates the average Cardiff household income to be £31,829 per annum suggesting that 34 per cent of the average Cardiff household earnings are needed to pay the average rent in the Welsh capital. The Cardiff household income data was collected via the Cardiff Research Centre at postcode level allowing for the creation of Area Profiles to be produced for each of the 29 Electoral Divisions in Cardiff.
With residential rents at an all-time high and industry leaders predicting rents to rise by a further 20% over the next five years the average Cardiff rent would be a staggering £1,089.60, 41 per cent of the average Cardiff household income. With talk of the UK and the Eurozone slipping back into recession these rent levels are surely unsustainable, so when is this rent bubble going to burst?
Welsh Icons no financial connect with WebLetz but we are happy to share their information with you.
WebLetz a Cardiff Letting Agent provides low cost, fixed price landlord solutions across Cardiff and South Wales, including:
- £120 Professional Tenant Finders Service
- 5% Property Management Fee
- Rent Guarantee and Rental income Insurance
Webletz can be contacted via email [email protected] or by telephone 0845 496 0000.
Why not visit www.lettingagentcardiff.com to download or FREE guides to
- Finding the perfect tenant
- Reducing void periods and receiving rent on time
