Mid-Year Market Update: How Are Rental Yields Performing in South Wales?
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We’re halfway through 2025 (already!) – and it’s the perfect time to check in on how your rental investment is performing. At Luscombe & Co, we’ve been tracking rental trends across Newport and surrounding areas, and there’s plenty to feel optimistic about.
Here’s a quick rundown of where things stand – and what’s worth watching for the second half of the year.
Average Rents Are Holding Strong
Despite economic wobbles nationally, rents in Newport have remained stable and, in some areas, are still rising. According to our latest internal data:
Average rent for a 2-bed property is up by 2.1% year-on-year.- High-demand areas like St. Julians and Rogerstone are seeing even higher figures, driven by continued demand from professionals and families.
Yield Performance
Yields in South Wales are still outperforming many areas of the UK. In Newport:
Average gross rental yield sits around 6.4% for well-maintained standard occupation contracts.- HMOs and newly refurbished flats are generating up to 7.8%, depending on location and condition.
This is excellent news for landlords seeking consistent income in a market that still offers growth potential.
Occupancy & Contract-Holder Retention
We’ve also seen strong contract-holder retention rates, especially in fully managed properties. Many contract-holders are opting to stay put rather than move, thanks to:
Rising rental prices elsewhere- High satisfaction levels with property condition and agent response
- Uncertainty in the mortgage market for first-time buyers
This reduces void periods and helps your yield remain healthy over time.
What to Keep an Eye On
Looking ahead to the second half of 2025, landlords should monitor:
EPC changes expected to be debated later this year- Market competition – especially if more landlords return to short lets or holiday lets
- Contract-holder affordability, as household budgets continue to feel the pressure
Rental performance across South Wales is stable, secure, and promising – especially when paired with professional management. As always, if you’d like a portfolio review or a one-to-one update on how your specific property is performing, we’re here to help.
Speak to your property manager today and let’s make sure your rental is working as hard as it should be.