Is Caerphilly or Cardiff better for buy-to-let?

Caerphilly has the higher average gross yield at 5.5%, while Caerphilly has the lower average purchase price at £225,000. Higher-yield markets suit cash-flow investors; lower-yield, higher-price markets tend to be capital-growth plays.

What is the average rental yield in Caerphilly?

The average gross rental yield in Caerphilly is approximately 5.5%. On a typical £225,000 property that works out at roughly £1,031 per month in rent before mortgage costs, letting fees, insurance and maintenance. Net yield after costs is usually 1.5–2.5 percentage points lower.

What is the average rental yield in Cardiff?

The average gross rental yield in Cardiff is approximately 5.5%. On a typical £275,000 property that works out at roughly £1,260 per month in rent before mortgage costs, letting fees, insurance and maintenance. Net yield after costs is usually 1.5–2.5 percentage points lower.

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Location comparison

Caerphilly vs Cardiff for Property Investment

Caerphilly leads on gross yield at 5.5%, while Caerphilly has the lower entry price at £225,000. Here is how the two markets compare on yield, price, deposit and tenant demand.

Caerphilly vs Cardiff at a glance

Metric	Caerphilly	Cardiff
Average gross yield	5.5%	5.5%
Average property price	£225,000	£275,000
Implied monthly rent	£1,031	£1,260
25% deposit	£56,250	£68,750
Stamp duty (additional property)	£11,250	£15,000
Population	45,000	365,000
Region	Wales	Wales
Investor rating	Good	Excellent

Caerphilly

Typical stock is a mix of terraces, ex-council semis and a growing number of apartment conversions closer to the centre. Tenant demand is underpinned by local employment in services, healthcare and logistics, supported by a population of around 45,000. On the average £225,000 purchase, a 5.5% gross yield implies roughly £1,031 per calendar month in rent — a useful sanity check when you are reviewing a listing. Castle town with Cardiff access.

Workable
Standard buy-to-let
Consider carefully
HMO / rent by the room
Strong fit
First-time landlord

Full Caerphilly guide

Cardiff

Expect a spread of semi-detached family homes, period conversions and new-build apartment schemes, with terraces concentrated in the older inner areas. Tenant demand is underpinned by a large student population, public-sector employers including hospitals and councils, supported by a population of around 365,000. On the average £275,000 purchase, a 5.5% gross yield implies roughly £1,260 per calendar month in rent — a useful sanity check when you are reviewing a listing. Welsh capital with universities and government employment.

Workable
Standard buy-to-let
Strong fit
HMO / rent by the room
Workable
First-time landlord

Full Cardiff guide

Which is the better investment?

If monthly cash flow is your priority, Caerphilly is the stronger option on paper at 5.5% gross. If you want the lower capital commitment, Caerphilly needs around £56,250 as a 25% deposit. Averages only take you so far, though — run the actual listing through PropertyROI before you offer.

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