Summer Highs and Steady Moves in Penarth's Market

The summer season can sometimes bring out the best of what Penarth has to offer, and this summer – so far – has been no different. We’ve had some sweltering weather, but we’re lucky enough to be able to take in a cooling breeze along the seafront and some shade on the Railway Path or at Cosmeston Lakes. This hot and cold very much applies to the property market at the moment too.

Here at David Baker & Company, we started to experience an uptick in activity levels just before Christmas, and this has been a trend that has steadily increased alongside the temperature gauges ever since. It’s been a busy time overall through the first half of 2025 but it’s by no means the case across the board. The local property market has been very house-by-house specific as potential buyers really focus on and drill down to what they truly want from their next home. This results in some properties performing really well and others struggling through no fault of their own. It’s unpredictable and price sensitive, but things are looking promising.

We reported on our listings and sales numbers in the spring issue of Penarth View and these continue to track ahead of the numbers for the first half of 2024. Interest rates have continued their gradual decline from their 2023 peak, and are now at 4.25%. Mortgages rates are volatile, but it is becoming more commonplace to find deals below 4%. Inflation dropped to 1.7% in September 2024, and although it is now back up to 3.6%, the economy has contracted for the second month in a row, which has caused forecasters to predict a further cut in interest rates ahead – and which may have already happened by the time you read this. In a nutshell, the economy remains in flux, but the cost of borrowing is reducing, and bricks and mortar is still a very good investment, particularly if it’s the family home.

Rental market update, Alison Hajilambi

The rental market continues to be strong and we have taken on a number of listings recently which have all proved to be popular – across all sectors of the market, from older period houses to more modern homes of all sizes, as well as flats. We have a long list of good applicants just waiting for available properties, and we really enjoy securing excellent tenants for our landlords.

Surveying update, Charles Wood

I have a healthy level of surveys coming through at the moment, mainly Level 2 reports but also probate and Help to Buy valuations. This level of work supports the increase in activity levels that we have seen across the business. While there are fewer trends to pick out in the surveying world, there are specific building matters that lenders become more or less conscious of over time, and I am always on hand to offer advice before you undertake any building improvements or when you come to buy or sell.

As always, there’s a lot of information to digest here. The takeaway is that the Penarth property market continues to withstand the pressures of the wider economic picture. Transaction levels remain stable but seem to be improving year to date. As always, the team at David Baker & Company are here to offer all of the advice, guidance and support you need when looking to buy, sell or rent. Please do give us a call (029 2070 2622) and we can arrange a consultation at a time to suit you. Our latest property listing can be found online, at www.davidbaker.co.uk.