Swansea Buy-to-Let 2024 Guide

According to Rightmove, the overall average Swansea property price was £200,854 over the last year. This is 2% up on the previous year and 16% up when compared to 2020. The value of Swansea property has risen massively in the past few years, reflecting growing interest in the area.

Despite this, the average price is still much lower than the UK average, which was around £261,500 in July 2023, according to Zoopla’s UK House Price Index.

But with the economy’s current tumultuous state and sluggish capital growth, it’s important to monitor property trends and forecasts. Property expert Savills predicts that capital value appreciation will strengthen in Wales over the next few years, growing 25.2% by 2029. This is more promising than locations in the South of England but regions such as the North West have an even more optimistic forecast of 29.4%.

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The Swansea City Centre is a popular area for students, as are the inner suburbs to the south and west, like Uplands and Brynmill. The Maritime Quarter portion of the city centre is a newly regenerated area known as Swansea’s version of chic city living, which is a hotspot for young professionals.

Areas to the north, like Fforestfach, offer good access to the M4 corridor, connecting South Wales to the South of England, so rental properties here have plenty of demand from commuters.

The Mumbles is an affluent seaside region to the West of Swansea, at the entrance to the Gower Peninsula. The Gower Peninsula has been designated an Area of Outstanding Natural Beauty since 1956, so it’s no surprise that property in this region can be on the pricier side.

Average Property Prices in Uplands

£215,752

Average Rental Yield in Uplands

4.77%

Average Property Prices in Fforestfach

£156,755

Average Rental Yield in Fforestfach

6.57%

Average Property Prices in Mumbles

£408,370

Average Rental Yield in Mumbles

3.29%

(Average property prices taken from Rightmove, rental yield estimates calculated with figures from housesforsaletorent.co.uk)

Scenic Location

As an area rich with natural beauty, Swansea is bound to attract nature-loving renters. Since the COVID-19 pandemic, renters are more likely to favour homes close to green spaces, and Swansea has this in spades. This includes parks, nature reserves, woodland, and beaches. There are also plenty of chances to get active with cycling trails, coasteering and surfing.

The Gower Peninsula was the first place in the UK to be given the status of Area of Outstanding Natural Beauty, and 33% of the area is either a National Nature Reserve or a Site of Special Scientific Interest. Oxwich Bay has been twice named the UK Beach of the Year and even holds the accolade of being the most beautiful beach in Britain. Whilst Swansea properties are not comparable to say a Buy to let property in West Bromwich, the area still attracts investors from around the world.

Swansea is one of the few UK cities with a beach, allowing residents to enjoy all the amenities and convenience of living in an urban area and the natural open spaces. The inner city districts are an attractive residential area for renters who want the best of both worlds, while the tourist hotspots could be lucrative for investors interested in short-term lets.

Regeneration

While the surrounding bays and nature reserves have always been known for their beauty, it’s been a more tumultuous journey for Swansea’s inner city areas. But plenty of investment has been pumped into the city, and this looks set to continue.

One of Swansea’s regeneration success stories is the Maritime Quarter. A former dockland on Swansea Bay was transformed into an in-demand residential area, now known for chic waterside restaurants and bars. Another is the Swansea Arena, attracting big-name performers to the previously overlooked city.

Swansea Council are undertaking a £1 billion transformative project for the Swansea city centre repurposing strategy, and other parts of the city are in their sights, too, including Swansea Bay.

Property investors can profit from regeneration by identifying up-and-coming cities and investing while the property prices are low. After the city becomes more attractive, the investor can benefit from property value growth and increased rental income and demand.

Off-plan property investment is growing in popularity as a way to acquire a new build property at a lower price point. There has been a shift towards new build properties in property investment trends, but typically new builds are more expensive than older properties. Investing off-plan refers to the strategy of investing in a property during an earlier stage of the development such as during the planning or construction stage. By investing earlier on in the project, the investor can benefit from discounts or payment plans from the developers.

But for investors looking for off-plan options in Swansea, opportunities may still be quite limited. Developers offering off-plan investments usually target the UK’s most major cities where there is very high demand and better potential for capital appreciation. Many off-plan opportunities are found in big cities such as London, Manchester, and Liverpool.