Getting the balance right in Cardiff’s property market

Carolyn Brownell – Executive Director, FOR Cardiff

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Property is once again at the centre of debate about the future of Cardiff city centre.

Empty units, changes of use, student accommodation and the rise of Build to Rent are often discussed in isolation, but they are all symptoms of a single challenge: how we balance competing demands to create a city that works economically, socially and over the long term.

City centres are no longer defined by a single dominant use. Retail has contracted, offices have evolved, and residential living has moved into the heart of urban areas.

Many people who work in the city choose to live in nearby neighbourhoods. Recently, Pontcanna was recognised nationally as one of the best places to live in the UK, reflecting the strength of Cardiff’s wider residential offer beyond the city centre.

This shift has been accelerated by hybrid working, changing consumer behaviour and sustained population growth.

These trends are not unique to us, but how we respond to them will shape our competitiveness for decades to come.

The growth of purpose-built student accommodation in Cardiff is a good example.

The challenge here is not students, but seasonality. Large volumes of under occupied accommodation can affect footfall, local businesses and the perception of activity in parts of the city centre at certain times of year.

As a result, many developers are exploring alternative uses for these buildings, including conversion to accommodation aimed at professionals and young families.

This is where care is needed. Student housing and Build to Rent are fundamentally different products.

Student schemes are typically designed for short term, high turnover living, while Build to Rent is about long-term residency, quality management and amenity.

Where change of use happens without clear standards, there is a risk of creating housing that is not well suited to either market.

That risks undermining confidence in city centre living and weakening the emerging Build to Rent sector that has the potential to bring stability and year-round occupation.

Build to Rent has an important role to play in Cardiff’s future, particularly for young professionals and key workers who want flexibility and proximity to work.

When done well, it supports local services, retail and culture throughout the week and across the year.

But it is not a silver bullet, and it must sit within a wider housing strategy that includes a range of tenures and price points.

Crucially, property strategy in Cardiff cannot focus on housing alone. If the city is serious about attracting major employers and senior roles, it also needs sufficient, high quality office stock.

Businesses looking to locate or expand along the M4 corridor consider not only talent pipelines, but whether senior staff can work effectively and live well in the same city.

Office contraction without replacement, or residential growth without employment space, risks weakening Cardiff’s offer.

This matters because Cardiff competes differently. Average salaries here are lower than in parts of the corridor closer to London, but our quality of life is a genuine strength.

Shorter commutes, access to culture, green space and a compact city centre are real advantages. To convert that into inward investment, we need the right balance of offices, homes and amenities so that people can build careers and lives here with confidence.

Getting that balance right is not about choosing between students and professionals, or homes and offices.

It is about recognising that cities function as systems. Property decisions affect workforce retention, business confidence, footfall and economic resilience.

Cardiff has the opportunity to mature into a city centre that works all day, every day, for residents, workers, students and visitors alike.

That will only happen if property strategy is treated not as a series of planning decisions, but as a core part of our economic strategy.