Where to invest in buy-to-let in Swansea

If you are looking to diversify your property portfolio and venture out to Swansea, you can rest assured that there is ample investment opportunity for you in this jaw-dropping coastal city. From the thriving city centre to the serene Gower Peninsula, Swansea offers a diverse range of experiences, making it an increasingly popular destination for residents and tourists alike. Let’s take a look at where to invest in buy-to-let in Swansea. 

Swansea was originally well-known for its port and heavily industrialised scene, however, nowadays, thriving industries such as the service sector, financial industry, communications, life sciences, marine industries, creative industries, health, and education are more economically relevant. Here, we discuss the ins and outs of Swansea and how investing in property here will hugely benefit your property portfolio. 

Why invest in Swansea

Swansea is known for its picturesque landscapes, vibrant culture, and rich history. Nestled on the sandy South West Wales coast, the city boasts an intriguing blend of modern living and historical charm. 

Investing in Swansea’s property market presents a lucrative opportunity for buy-to-let investors. The city’s growing population, fueled by its status as a regional hub for commerce and education, underpins a strong demand for rental properties. 

Swansea is home to several high-profile universities and colleges, too, attracting a substantial student population that sustains a consistent demand for housing – another green flag for property investors and landlords alike. 

Regeneration projects

When exploring different areas to invest in, research whether there are any regeneration projects being implemented. This is always a great sign because it means that the area will thrive economically. Swansea has a few exciting regeneration projects taking place; let’s take a look at a few:

• Recently, the Swansea Marina has been modernised and provides an area becoming more popular amongst residents wanting to live and work here. 

• The Copr Bay development means that Swansea’s city centre will see £1 billion being invested into projects such as a state-of-the-art arena and a landmark bridge.

• Swansea Central North will see new offices, leisure centres and residential property and will be connected to the Copr Bay arena and waterfront. 

All three projects will open up an array of opportunities as a landlord, enabling you to expand your property portfolio to a coastal-meets-cosmopolitan area. 

Student life 

Student life is on the rise in Swansea, and so if you are looking to expand into student accommodation, now is the time. The economic impact of higher education in Swansea has been nothing but positive, with students having contributed £869.26m to the economy in 2021 (Viewforth Consulting). 

There are two universities in Swansea, the University of Wales Trinity Saint David (hosting 10,000 students) and Swansea University (hosting 20,415 students). As you can see, the opportunity for student accommodation here is endless.  

Things to do in Swansea

The city is a hub for a variety of activities and attractions. From the stunning beaches of the Gower Peninsula to the energetic Swansea Market, the city caters to all tastes. Cultural highlights include the Dylan Thomas Centre, Swansea Museum, and the Grand Theatre. 

The city’s parks, such as Singleton and Clyne, offer green spaces for relaxation and recreation, adding to the quality of life for residents. There is something for everyone in Swansea, which means that your property portfolio can be diversified in just this one city. 

Property market in Swansea

Swansea’s property market is characterised by its diversity, offering everything from modern city-centre apartments to traditional houses in suburban areas. The market has shown resilience, with steady growth in property values over recent years. This trend, coupled with reasonable property prices compared to other UK cities, makes Swansea an attractive market for investors. 

As you will be aware, the costs of rental properties in Swansea are expected to rise in 2024 and if this is taken into consideration alongside market trends, you will be well on your way to a lucrative and successful property portfolio. 

Rental demand in Swansea

Swansea presents a promising opportunity for property investors, particularly in terms of rental yields. Swansea stands out in Wales with four out of the top ten postcodes featuring for best rental yields. These include: 

• SA1 at 6% 
• SA31 at 5.48% 
• SA5 at 5.21%
• SA6 at 4.03%

Keep in mind the specific licensing requirements set by Swansea Council for managing properties like Houses in Multiple Occupation (HMOs). Also, there is a Rent Smart Wales scheme which mandates that landlords need to register, apply and complete a training course to successfully manage property in Wales. 

Property trends

So, what are the different trends that you should be taking into consideration when looking to invest in Swansea?

Going green

Tenants are always on the lookout for properties that are more eco-friendly with energy-efficient features and mindful waste disposal because utility bills are usually lower when this is the case. Not to mention that ‘sustainability’ has been a hot topic as of late and people are becoming more interested in protecting our planet.

Because of this, you should consider implementing sustainable upgrades to your property so that you do not lose out on opportunities with new tenants. Your running costs will be lower in the long run because of this, too. 

Technology

Technology has made most areas of our lives easier, including managing properties. With the use of innovative technologies, administrative procedures, communication with tenants and ensuring streamlined payment processes. Let’s take a look at some of the technology that can be used to streamline your processes.

Property management software

• Rent collection and financial management: There are online platforms that facilitate digital rent collection, track expenses, and manage financial records. They offer automated reminders, online payment options, and income-expense reporting.

• Tenant screening: Different services provide background checks, credit reports, and rental history to help landlords select reliable tenants.

• Maintenance and repair management: There are various tools that streamline maintenance requests, allowing tenants to report issues online, and enabling landlords to track and manage repairs efficiently.

Smart home technology

• Smart locks: Certain devices allow for keyless entry and remote access control, enhancing security and convenience for both landlords and tenants.

• Smart thermostats: There are certain thermostats that help in monitoring and controlling property temperatures remotely, potentially reducing energy costs.

• Water leak sensors: Certain smart sensors alert landlords to leaks or flooding, preventing major damage.

Communication and Collaboration Tools

• Communication apps: WhatsApp, Slack, or specialised property management apps facilitate efficient communication between landlords and tenants.

• Document storage and sharing: Cloud services like Google Drive or Dropbox are useful for storing lease agreements, property documents, and maintenance records, with easy sharing options.

• Landlord Hub: here at CIA Landlords we have our own Landlord Hub that can facilitate external storage and sharing options

Legal and Regulatory Compliance Tools

• Electronic signature services: Platforms like DocuSign or Adobe Sign allow for the electronic signing of lease agreements and other legal documents.

• Legal advisory services: There are online resources that offer access to legal forms, advice, and resources specific to landlords.

• Landlord Hub: here at CIA Landlords we have our own Landlord Hub that provides over 200 legal document templates and legal advice 

Energy efficiency and sustainability tools

• Energy monitoring systems: Systems like Sense or Emporia Vue help in tracking energy usage, promoting efficient energy consumption.

• Solar panels and green technology: Investing in solar panels or eco-friendly appliances can reduce energy costs and appeal to environmentally-conscious tenants.

Financial analysis and investment tools\

• Real estate investment software: Tools like PropStream or Mashvisor provide data analysis, market trends, and investment insights for landlords. 

• ROI calculators: Online calculators can help assess the profitability and return on investment of rental properties.

The best areas to invest in a buy-to-let in Swansea

Now that you know that investing in property in Swansea is definitely a good idea, let’s take a look at some of the best areas to invest in a buy-to-let property. 

City centre & Maritime Quarter

With a population of approximately 12,000 and average house prices of £188,650, Swansea’s city centre is a great place to invest in. The area is becoming a hub for student living and is an increasingly popular area for tenants looking for city living. 

Also, Maritime Quarter offers a diverse property range from penthouses to affordable homes and gives you ample opportunities as a landlord. 

The average rental yield here sits at approximately 6%. 

South & West Swansea

Housing a population of 65,500, the districts south and west of the city are arguably Swansea’s favourite residential areas for landlords. Both areas offer easy access to Swansea’s city centre and the Gower, which adds to the attractiveness of these areas. 

Average house prices range between £177,000 and £430,000 here and offer average yields of approximately 4%. Property closer to the city centre hosts Victorian and Edwardian designs, with properties further away offering more upmarket properties. 

North Swansea

Employment opportunities in north Swansea are rife due to the amount of business parks in the area and being situated close to the M4 motorway. Different areas within the north of Swansea include:

• Fforestfach
• Llandore
• Morfa
• Bon-y-Maen
• Mynydd-Bach
• Morriston

Property prices in this area range between £125,000 and £150,000 and are on the mid-lower end of the pricing scale and property types include older terraces and a number of housing estates. Rental yields sit at approximately 4%-5%, offering good value for money for buy-to-let investments. 

Gower Peninsula

Offering affluence at its best, the Gower peninsula is a prime residential area for tourists, visitors and Swansea commuters. This area is known for its high property prices ranging between £250,000 and £500,000, offering rental yields of approximately 3%. 

Each of these areas offers unique advantages for buy-to-let investors, depending on your target tenant demographic and investment goals.

Swansea’s combination of ongoing regeneration, a strong rental market, and diverse property options makes it an attractive location for property investment. By carefully selecting the right area to invest in, you can capitalise on Swansea’s growing appeal and secure profitable returns on your investments.

For more information on the most suitable buy-to-let insurance coverage contact our team of experts today at CIA Landlords on 01788 818 670.