Often, finding somewhere to live is difficult whether you are looking to rent or buy. The chronic lack of housing across the nation makes things hard for many and unfortunately, there is no easy, quick fix except to wait for more houses to be built.
As the second largest city in Wales, Swansea is no different. But what makes things even more competitive here is that the city is booming, with more and more jobs in the local area. It is no wonder so many people want to move here.
So, if you’re planning on living in Swansea, you may wonder whether it is easy to find a place to rent or, if like in much of the UK, finding a place is difficult.
Let’s explain the current situation in Swansea and why an increasing number of people are looking to sell a tenanted property in Swansea with We Buy Any Home for a quick and easy solution with no hidden fees.
Demand For Rental Property in Swansea
So, is Swansea a good place to invest in property? In our view, yes, because the demand for rental property in Swansea has never been higher.
- In recent years, there’s been a fall in the number of properties available for rent, but an increase in the number of people that want to rent them. This mix is, for renters at least, never good, but it is for buy-to-let investors.
- The latest estimates suggest that Swansea needs at least another 1000 extra properties per year to fulfil rental needs. On the flip side, if you have a property in Swansea, chances are that you’ll quickly find somebody to rent it, and they’d be willing to pay increased rates for it too.
An area that does seem to be particularly thriving in Swansea and is unlikely to see a huge fall even if the economy suffers is the student market. Swansea has a thriving student scene, and since many of them will be receiving something in the way of student loans, student rentals will remain popular for many years to come. Students are reliable renters, and many of them will likely be renting properties within Swansea for around three years, so it is a regular, reoccurring market to tap into.
Current Swansea Rental Yields
Swansea is regarded as one of the best places in the UK to own a rental property, although current yields do lag behind major cities such as Leeds, Birmingham and Cardiff. Current rental yields in Swansea sit at a little over 5.27%, which is higher than both the UK and the Welsh average although these higher rental yields come from student properties where multiple people share a property, so the rent can be slightly higher.
However, owning and renting out a standard apartment or a house as a family home can still deliver good rental yields, and Swansea is still much better than both the UK and Welsh average on this front.
Current Average Rental Prices in Swansea
Because Swansea is very much a landlord market at the moment, rent prices in the city have been rising and it is likely that they will do so for the foreseeable future, although this is much in line with the rest of the UK.
These are the current average prices (as of March 2024):
- One Bedroom: £772 per month
- Two Bedrooms: £1,021 per month
- Three Bedrooms: £1,065 per month
- Four Bedrooms: £1,512 per month
- Five Bedrooms: £1,783 per month
If we break this down further, renting rooms to whole houses shows the difference in return landlords can expect:
- Room: £536 per month
- Flat: £994 per month
- House: £1,322 per month
This lines up with the fact that owning student property within Swansea may lead to a better return on investment for property owners since these properties would likely only require three rooms to fill before they have beaten the average rental price for a home.
Buy-to-Let Areas in Swansea
With the demand for property that it is in Swansea, most of the areas should offer prime real estate for buy-to-let projects, although there are a few favourites among investors which could make the difference in getting slightly higher rents.
South and West Swansea
While the property prices here are somewhat more expensive than other parts of the city, the bulk of people who move to Swansea have their eyes on South and West Swansea, and landlords can see positive yields.
South and West Swansea will often require a slightly higher investment, due to the larger Victorian and Edwardian properties in the area, but prices here are almost constantly rising, which could deliver a return when the property is sold.
North Swansea
Parts of North Swansea, particularly Llandore and Morfa, are attracting huge investment at the moment. The area is full of business parks, and being just a short hop from the M4 motorway means that many people see North Swansea as a good base for working in the surrounding area. Families are increasingly being attracted to the area as a result.
Property prices are significantly cheaper here than the previous area too, which makes it easier for new buy-to-letters to enter the market. The property yields are roughly the same as in other areas of the city so could appear to those looking for renters outside of the student population,
Gower Peninsula
Gower Peninsula does have some of the more expensive properties in Swansea, so it may not be for all investors. However, there are plenty of ways to make money from properties here, including running Airbnb (or something similar), renting to students and more. Rental yields are about 3%, but because Gower Peninsula is one of the more in-demand areas in Swansea, property prices herb climb regularly, which means there is always an opportunity to sell your property for a sizeable return at a later date.
Struggling to Find Renters & Hoping to Sell Your Tenanted Property? We Can Help
Want to sell a tenanted property in Swansea? It can be difficult through traditional methods such as estate agents, which is where we can help. If you’re struggling to find renters, want to offload a property with problem tenants and don’t want to deal with the rigmarole of moving them on, then contact us here at We Buy Any Home.
We can give you a cash offer for your home and you could sell your tenanted property in around a week if you want to move fast, or we can work to a timescale set by you. This is the fastest, and best, way to sell a tenanted property, and with no hidden fees, our service is stress free.
Give us a call today and we’ll make you an offer within minutes.
