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Property investment in South Wales

In this article, Nest Wise Property looks at why South Wales is an excellent investment area and why you could benefit from investing in one of the fastest-growing cities in the UK.

Wales is rarely considered a top priority for property investors but could this be a mistake?

South Wales offers among the cheapest buy to let properties anywhere in the UK. This desirable location offers a range of other benefits too, including picturesque mountainous and coastal areas. It is home to the capital city of Wales, Cardiff, where some of the UK's biggest national events take place.

Why invest in South Wales property?

First, as a whole, South Wales is the most populous and busiest part of Wales. This area covers a range of cities including Newport, Cardiff and Swansea with their large property markets, as well as, many small hamlets, villages and towns that are spread around the larger cities. Such areas as Monmouthshire, the Valleys and the Gower are also fantastic place for property investment with their local history, beauty and access to a range of sporting activities which opens up a market for second or holiday homes in the area.

Second, in recent years, the Welsh Government has funded large regeneration schemes to grow the Welsh property industry. For example, Wales provides a shared equity loan scheme to buyers of new-build homes. The scheme supports the purchase of homes up to £300,000 bought through a registered Help to Buy builder. With such schemes and low property prices, the cities continue to grow as they make it an attractive place for businesses to expand and relocate.

An example of a business that has grown in South Wales include the established independent high end TV drama production company, Bad Wolf that is based in Cardiff Bay. The company had  a turnover of £50.31 million in 2017-18. The company produces ambitious drama productions, such as His Dark Materials, A Discovery of Witches and Industry, which has brought A-list actors and directors to the South Wales area.

Third, the South Wales economy has been boosted by the removal of tolls on the Severn Bridge in 2017. Wales Online reported that property prices are rising as a result and property investors should also keep an eye on plans for the South Wales Metro. The article noted that the transport for Wales Chief Executive said the Metro will be 'one of the best in the world.

Fourth, it is important to highlight that South Wales is home to two of the top universities in the UK. This of course means that the student accommodation sector in South Wales is a huge market. The University of Cardiff has around 30,600 students and Swansea University has around 21,000 students.

Finally, Newport and Caldicot have been named the most and fourth, respectively best-value places to live for people working in Bristol based on average mortgage costs and train fares.

What are the visible effects from coronavirus?

The housing market in Wales has only just reopened some time after that in England. The First Minister of Wales, Mark Drakeford announced that estate agents can be opened subject to  compliance with the coronavirus regulations. Although the market has opened there is uncertainty about the extent to which volumes and prices will be effected by the pandemic. However, in England, Rightmove have seen 40,000 new sales agreed since the market resumed there on 13th May, with buyers agreeing to pay 97.7% of asking prices on average. So if South Wales follows that trend it could be a good time to buy or sell a property in the area.

Where can I get more advice?

For those who want to get into the housing market in South Wales, seeking professional advice and support should help in making a purchase at the optimum time. For such support, The Nest Wise team can manage each step of the process from finding a property, viewing and negotiating its purchase, through paperwork, processing and completion.

We can be contacted via email invest@nestwiseproperties.co.uk or call us on 01656 856 886.

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I would not hesitate to recommend Nest Wise for anyone else looking to grow a rental portfolio in and around South Wales.
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