Last updated on September 1st, 2023
If you are looking into buying a property for Airbnb in the UK, knowing the Airbnb rules in your preferred city is the first step! In this article, we featured Airbnb regulations in Cardiff along with short-term let policies, buy to let properties, things to consider in property investment, and more. Continue reading and learn more about the Airbnb rules in Cardiff!
Is Airbnb legal in Cardiff?
Don’t worry, Airbnb is legal in Cardiff! The capital of Wales is a modern city with Victorian touches in its surroundings. Cardiff basically has it all, from fascinating castles & museums to many green spaces where one can relax.
Here is a little proof! As of May 2022, there are 13,943 nights available in Cardiff from Airbnb alone. Sabina manages 47 listings, Miroslav and StayBC operates 39 and 28 respectively.
How much can I make by running an Airbnb in Cardiff?
Currently, there are 956 Airbnb listings in Cardiff, with 61% of entire houses earning up to £2,873 a month. The Average Occupancy Rate in Cardiff is 40% and the average daily rate is £393. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Cardiff can make up to £55,200 each year. Check out our Short-Term Rental Income Calculator!
Short-term rental policy in Cardiff
- Compulsory landlord registration & licensing
The Housing (Wales) Act 2014 requires all landlords with property in Cardiff to register with Rent Smart Wales and to either be licensed themselves if they’re ‘self-managing’ or use a licensed agent.
- It is required to pay a Council tax in Cardiff.
- BONUS: Recent Let Control Plans in Wales!
The Welsh Government is planning to introduce controls to limit the numbers of second homes and holiday lets, as well as a licensing scheme for anyone wanting to list units on booking platforms such as Airbnb.
Cardiff Property Investment
If you are looking to start an Airbnb business in the UK, this is your go signal to do so! Before investing in a property in Cardiff, you have to consider the major determinators for success. This includes average price, population, nearby landmarks or attractions, and rental yields to expect – among the rest. Here are some of the most recommended areas in Cardiff that you can look into & consider purchasing:
| Area | Population | Average House Price | Average Rent Price (pcm) | Average Airbnb Revenue | Yield |
|---|---|---|---|---|---|
| City Centre & Cardiff Bay | 44,400 | £194,000 | £1,348 | £2,755 | With careful buying – in CF10 this could be up to about 7% |
| Inner City Suburbs | 97,000 | £190,000-£230,000 | £1,237 | £3,494 | Yields here, east of the centre and based on CF24, are a solid 4%. But west of the centre in CF11 up to 6% is possible |
| Outer Suburbs | 182,000 | £132,000-£364,000 | £1,136 | £1,772 | Yields in these areas are likely to be 3% in CF5 and CF14 – and 4% in CF3 |
Source: Property Investment in Cardiff
Rental Property in Cardiff
Buying a property in Cardiff with an impressive rental yield is an excellent way to have a passive income. Cardiff is best known for its modern economy with a strong market for student accommodation. By looking at the following property investment websites such as Right Move and On The Market, you can get a grasp of the various prices in Cardiff.
Conclusion
In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15 – 30% gross rental yields, and 10-20% net. It’s also fun to do!
