Wales Rental Market Update

Welsh Rental Market Shows Steady Growth and Strong Yields Heading Into 2026

Wales’ rental market continued to demonstrate resilience throughout 2025, with a combination of steady rent levels, strong tenant demand, and competitive landlord yields positioning the nation as one of the UK’s more stable regions for rental investment.

While UK‑wide rental pressures began to ease last year due to increased supply and cooling demand, the Welsh market maintained a consistent performance, offering both tenants and landlords a comparatively balanced environment.

Rent in Wales: Stability Amid National Slowdowns

The nationwide slowdown in rental price growth also reached Wales, but the country avoided the sharper fluctuations seen in some English regions. Rightmove’s Q4 2025 data shows:

• Wales recorded one of the stronger average rental yields, landing at 6.9%, slightly above the national average excluding London (6.3%).
• This represents a +0.1% annual increase in yields - modest but meaningful during a period of broader market cooling.

Tenant Demand: Improving Balance but Still Competitive

Across the UK, tenant enquiries per property eased from pandemic‑era highs, and Wales followed this pattern.

Key UK‑wide indicators showing improved balance, which also reflect conditions in Wales, include:

• Supply of available rental homes up 9% year‑on‑year.
• Tenant enquiries per property falling from 14 in 2024 to 10 in 2025 on average.
• Competition remains lower than peak years, but still above 2019 levels, indicating Wales continues to benefit from healthy tenant demand.

With Wales offering affordability compared to many English regions, demand is expected to remain above historical averages, particularly in urban hubs such as Cardiff, Swansea, and Newport, where job growth and university populations continue to drive the market.
 

Market Outlook for 2026: Steady Growth Ahead

Rightmove predicts a 2% rise in average UK rents in 2026, and Wales is expected to follow a similar trajectory. Several factors support this outlook:

• Chronic shortage of available rental stock despite recent improvements
• Continued strong tenant demand in major Welsh cities
• Investor confidence boosted by better mortgage affordability
• Increased stability compared with recent years of rapid rises

Tenants in Wales are likely to experience a more predictable and less intense market in 2026 - although continued supply shortages mean rents are still expected to edge upward.

If you are considering selling the property market is expected to remain active so there is still time to capitalise on the renewed buyer activity.  Now is a great time for sellers to take action and getting ahead with their 2026 moves, if you would like to find out more about selling with us and to book your FREE market appraisal, please contact your local branch 

You can even get a free instant valuation of your property online on our website 24 hours a day.