AUTUMN MARKET OVERVIEW
As we move into the final quarter of 2025, the property market across Cardiff and the Vale of Glamorgan remains relatively steady, despite ongoing economic uncertainty. While the pace of activity has eased noticeably compared to the post-pandemic surge, there is still a consistent, if more measured, level of interest in both the sales and lettings sectors. Underlying demand persists, though more cautiously, with the region’s overall appeal helping to maintain a degree of market stability.
Sales Market Overview
In Cardiff, house prices have remained relatively stable throughout the year, with average values showing modest year-on-year growth. The latest figures suggest prices are up around 2–3% compared to this time last year, with the average home now valued just below £270,000. Activity levels have slowed slightly, which is no surprise given the ongoing pressure from higher mortgage rates and cautious consumer sentiment. However, well-priced and well-presented properties — particularly in popular areas like Pontcanna, Roath, and parts of north Cardiff — continue to attract serious interest.
The Vale of Glamorgan presents a similar picture, albeit with a slightly more subdued price trajectory in recent months. Average values are hovering around the £285,000 mark, with some localities such as Penarth and Cowbridge still commanding a premium. The market here has been supported by consistent interest from families and lifestyle-driven movers seeking space, schooling, and coastal living. Demand remains steady, though buyers are becoming more selective and price sensitive.
Across both Cardiff and the Vale, we’re seeing a lengthening of transaction times, and in some cases, sellers are needing to adjust expectations on price. That said, properties in sought-after school catchments or with strong transport links (including those well-positioned for the South Wales Metro) continue to generate good levels of interest.
Lettings Market Overview
The lettings market has remained one of the strongest sectors this year, driven by a continued imbalance between tenant demand and rental supply. In Cardiff, average rents have risen by over 9% year-on-year, with many properties achieving record monthly figures. Demand is particularly strong for one- and two-bedroom apartments in the city centre and Cardiff Bay, as well as for family homes in suburban areas like Llandaff and Cyncoed.
In the Vale of Glamorgan, rental values have also grown significantly, with average rents now just shy of £1,000 per month. Commuter towns such as Barry and Dinas Powys have seen notable increases, while properties in Penarth remain highly sought after, particularly among professionals and families relocating from further afield.
With rising mortgage costs deterring some would-be first-time buyers, and an increasing number of renters staying in the sector for longer, demand is expected to stay high well into 2026. For landlords, this presents continued opportunity — especially for those with well-maintained, energy-efficient properties that meet evolving tenant expectations.
Market Outlook
Late 2025 and Early 2026
Looking ahead, we anticipate a relatively stable close to the year, with a slightly quieter winter period typical of the season. Sales activity may remain muted in the short term as buyers wait for greater clarity on interest rates and any potential tax or housing policy changes. However, there is cautious optimism for early 2026, particularly if inflation eases and lenders respond with more competitive mortgage deals.
For the lettings market, we expect current trends to continue into the new year. Rental growth may begin to slow slightly, but strong demand — combined with limited new stock entering the market — will likely keep pressure on rents.
Landlords who invest in quality and long term tenant retention will continue to benefit from robust yields.
Final Thoughts
Overall, while the market has undoubtedly become more price-sensitive and slower-paced than in recent years, Cardiff and the Vale remain fundamentally strong locations for both homeowners and investors. Our advice to sellers is to remain realistic and responsive to market conditions, and for buyers, to take advantage of increased choice and more balanced negotiations. Landlords should review their portfolios to ensure properties are competitively positioned to capitalise on sustained tenant demand.
At MGY, we’re always on hand to provide tailored advice — whether you’re thinking of selling, letting, or simply planning your next move.
If you’d like a free market appraisal or an informal chat about the market in your area, don’t hesitate to get in touch.
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