BBC Wales Hoy presenter
BBCThe main investor behind a boom in high -rise apartments in Cardiff Center has affirmed that developments could reduce the city rentals.
Finance Company Legal & General is building 1,000 floors to rent in the Welsh capital.
But with some of their apartments in a room that cost £ 1,300 per month, a rental agency warned that interest rates could have a price outside the market.
Private rentals in Wales have increased by 8.5% around last year, while in Cardiff they have increased by more than 9%, according to the recent data of the ONS.
Cardiff follows the steps of cities such as Manchester and Liverpool and see great growth in the so -called rental construction accommodation, which are blocks of apartments owned by investment partners that are only available for interest.
Usually, they have gyms in the place, communal living spaces and areas of receipt of janitage.
Around 1,000 floors of this child have a bone construction in Cardiff in recent years and almost 3000 more are on their way, according to Bidwells property consulting.
They said that the average monthly rent of an bed in the new Cardiff’s rental market was £ 1,297 per month, compared to £ 944 in the traditional market.
Legal and general claim that by increasing the offer of properties in the rental market, prices will become more affordable.
“With large amounts of supply that arrive at the same time, we are controlling and limiting the rents that rise in the city,” said Dan Batterton, head of the company’s residential.
But Jon Hooper-Nash, director of letters at Jeffrey Ross Estate Agents, is skeptical.
“It is a classical GCSE economy: supply and demand, but the rents they ask are already much more expensive than they are again,” said Mr. Hooper-Nash.
“So I don’t understand the narrative that they are going to tear down rents, when they have raised them.”
Legal & General, who has 30 residential development throughout the United Kingdom, already has a block in Cardiff with around 300 apartments called Wood Street House, which he was full.
He said that another development with more than 700 apartments at the site of the old Brewerny brains would come out in flow next year.
“People have moved slowly from the city’s centers because the pleasant places do not dazzle to live, but we need to use the land that we have improved better, otherwise we have to start expanding our cities,” said Mr. Batterton.
“We are taking Brownfield land in the middle of our city centers, building houses on them and that is bringing people back.
“People are using the main street, restaurants and bars because they live live.”
When asked if the income was too high for the local market, Batterton said that the rentals in the new site would be lower.
“We cannot be only high -end if we have 1,000 apartments in the center of the city of Cardiff, we have to be attractive to a wide range of demography and salaries as possible.”
But Mr. Hooper-Nash said that the income of the new apartments would have to lower substantials to be affordable.
“We deal with hundreds of tenants every week. In 12 months it can be different, but the people we see, the private rental tenants in Cardiff, what they can generally pay is not that,” he said.
“Unless a change occurs, I don’t see how they will work.”
So what do the new development cyclists do?
Eden Cronin, 27, from Cardiff, welcomed any increase in the rental accommodation supply.
“It took us ages to find a place,” he said.
“We discovered that when we were looking at or that we were going to places, I had alreamy leg tasks or had a leg for three visits to us. It was almost like a race.”
What did she think or £ 1,300 for an apartment in a bed?
“It is exensive, especially since it is not London.
“I would expect something quite large, spacious with a garden, an entrance road or a place to have a car.”
Alejandra Escamilla, 26, from Cardiff, said she was currently paying £ 900 for months to rent an apartment for a bed and that she was “inside [her] Comfort zone “.
“It is an apartment of a bed with a shared garden and the building is quite new. They are not included invoices,” he said.
“I hope the rentals rise real, but I am planning to move from the city. That will be cheaper.”
Fergus Thomas, 31, of Abergavenny, questioned the investor’s statement that the rentals could be controlled.
“I think it’s likely to be reliable,” he said.
“I was interested in many years and every time I feel it is more difficult to find something, and every time you feel more extent.
“There is too much money to win and too many people seek to rent a place, so I don’t think they go down.”
Ben Gaffiero, 28, and his partner, Pratibha Zala, 27, live in an interest -to -construction apartments called Copper Works that has a gym in the place, reception of concierge and terrace on the roof.
They pay £ 1,100 for months for an apartment of a bed with invoices at the top and said he felt like living in a hotel.
“I live in a different place that was around £ 800 a month and that was disgusting, so the comparison for there would say it. At least it is hygienic and a place that is good to live a human being,” said Ben.
“It gives us a different standard of living,” added Pratibha.
