Predictions for property market
MORE Airbnbs and the first “build to rent” properties in Cardiff are some of the big predictions for the Welsh housing market in 2018.
With uncertainty over Brexit and budgets squeezed, owning property continues to be one of the big aims of people in Wales. We spoke to property expert Douglas Haig about what he expects to see from the housing market in Wales.
He is the managing director of The Seraph Group and is also the vice-chairman and director for Wales of the Residential Landlord Association.
According to Mr Haig, there could be a first for the Welsh capital. He believes Cardiff council will give permission for properties to be built with the sole purpose of being rented out.
He said: “Purpose-built properties for the rental market are a common sight in mainland-Europe and the US, but they are an increasing trend in the UK.
“In England, there are nearly 81,000 of these properties in the process of completion. As rents rise and tenants are looking for additional services on top of their rent, I can see this trend starting hitting Wales in 2018.”
Purpose-built student accommodation have been a hot topic in recent years. In Cardiff, in the past three years there have been 21 major developments either open, under construction or being considered for permission.
Of these 13 are within about 250 metres of each other around the Newport Road/ City Road junction. There are currently six that are open. Fitzalan Court, The Neighbourhood, 21-27 City Road, Windsor House, Arofan House and Glendower House add up to 1,303 beds. All of which are exclusively for students and are privately owned and managed.
Approval has been granted by planners to another seven totaling 2,696 beds and another seven with 2,978 beds awaiting decisions from planners.
Mr Haig said: “Purpose-built student accommodation has been an increasing trend over the last few years.
“However, I think it is approaching saturation, for now, and 2018 will see the large-scale projects start to plateau.”
During the Champions League Final people in South Wales started becoming their own version of Basil Fawlty and rented out a room through Airbnb. According to Mr Haig, this trend is not stopping any time soon.
He said: “Airbnb is a global phenomenon that is challenging not only the hospitality sector but the private rented sector. Government legislation from both Westminster and Cardiff Bay isn’t overly clear on regulations surrounding the industry, with taxation laws on rented properties not affecting those who choose to rent out rooms via Airbnb.”
Mr Haig predicts that there will be stagnant house prices but a shortage of new properties coming on the market due until after Brexit.
“We won’t see a huge surge in new properties coming onto the market until Brexit is delivered,” said Mr Haig.
“House prices will, overall, stay the same.”