Wales Lettings Market in Focus: Insights for 2025
The Rightmove Lettings in Focus 2025 report shines a spotlight on the UK rental market, and here at Peter Alan, we’ve taken a closer look at the Wales-specific findings. Whether you’re a landlord, tenant, or investor, the data highlights important trends shaping the Welsh property market this year.
Supply and Demand: Signs of Balance Emerging
After several years of intense competition, the Welsh rental market is beginning to show signs of stability:
- Rental listings are up 9% year-on-year, giving tenants more choice
- Tenant enquiries are down 9% compared with 2024, easing competition per property
While demand still outweighs supply, the pressure tenants felt in the peak years of 2022 and 2023 is beginning to ease. For landlords, this means properties may take slightly longer to let, but tenants are more likely to find suitable homes without facing overwhelming competition.
Rental Yields in Wales: Solid Performance
For landlords, Wales continues to offer strong investment returns. The average rental yield in Wales is 6.9%, up 0.2% from 2024.
Some standout investment areas include:
- Wrexham - Composite yield 10.4%
- Blaenau Gwent - 10.1%
- Merthyr Tydfil - 10.0%
- Neath Port Talbot - 9.8%
- Newport - 9.7%
For tenants, strong yields often reflect landlords’ ability to maintain properties to a good standard, which in turn supports more positive renting experiences.
Landlord Sentiment: Challenges but Also Confidence
Landlords across Wales, like the rest of Britain, face challenges around costs, legislation and uncertainty.
One in three considering leaving the market, citing legislation and reduced profitability as key factors.
However, over 70% plan to maintain or grow their portfolio over the next 12 months.
Top landlord priorities included:
- Finding reliable tenants
- Keeping properties well maintained
- Staying compliant with regulation
As one Welsh landlord shared with Rightmove:
“I want to make the right financial decisions. I’m thinking about diversifying my investments.”
Tenant Experiences: Still a Tough Market
For renters, affordability and competition remain key concerns:
- Across Britain, 66% of tenants say there are fewer homes they can afford compared with their last search
- 27% describe renting as “extremely stressful”, with rising costs the biggest concern
In Wales, the increase in supply and easing demand should gradually help, though the market remains competitive by historical standards.
How Peter Alan Supports Both Sides
At Peter Alan, we’re here to support landlords and tenants across South Wales:
- For landlords - we help maximise rental income, navigate complex legislation, and find reliable tenants. Our expertise ensures your property is well-managed and compliant
- For tenants - we offer access to one of the widest ranges of rental properties in Wales, guiding you through the process and helping you secure a home that fits your needs
Final Thoughts
The Welsh rental market is showing encouraging signs of balance, with opportunities for landlords and more breathing space for tenants. While challenges remain, especially around affordability and regulation, the outlook is steadier than in recent years.
At Peter Alan, our local expertise and national insight mean we’re perfectly placed to help you navigate the next chapter of the Welsh lettings market.
Source: Rightmove Lettings in Focus Report, August 2025. Data and commentary based on Rightmove surveys and market data for Wales.
