The Changing Face of Cardiff By Jerald Solis

Business Development and Acquisitions Director, Experience Invest

‘The face of Cardiff has changed dramatically in the past thirty-two years.

From Lord Crickhowell leading charge with the creation of the Cardiff Bay Development Corporation (CBDC) in 1987, to the ambitious new-build projects in the city centre, Cardiff appears to be in a constant state of change.

Whilst the priorities of Cardiff’s regeneration have realigned themselves over the previous three decades, the objectives have remained consistent; to create an environment, which promotes job creation and consequently a better quality of life for residents. Indeed, as the years have progressed, the drivers of change have adjusted with the times, from redeveloping the former bay and driving new business development, to the construction of accommodation complexes.

This is indeed an exciting time for Cardiff, with a multitude of employment, education and investment opportunities presenting themselves in recent years. However, this has not always been the case.

Where It All Began Cardiff has not always been such a vibrant city, which offers a plethora of opportunities for locals and students alike. Like many industrial towns after the Second World War, its dependence on just one or two trades, coal and wool, proved to be detrimental.

Before the Second World War, Cardiff was a prosperous city; jobs were plentiful, and the city’s economy was booming. The majority of coal and wool factories were based in Cardiff Bay, then a bustling area of activity.

With traders from all over the world being able to obtain Cardiff’s materials, thanks to an easily accessible harbour, income was fowing into the thriving city.

However, after the Second World War, global trade fell, and Cardiff Bay began to lose out to the more competitive ports across the UK. What’s more, the decline of the UK’s coal and wool industries, meant that Cardiff’s income and employment opportunities decreased dramatically.

Consequently, by the 1980s, what was once a vibrant and prosperous city, was a bleak wasteland.

With high unemployment and the standard of living dipping, the innovative mind of Lord Crickhowell saw an opportunity to drive change in the city, placing specifc focus on the regeneration of Cardiff Bay. His proposals were dramatic; from marine engineering to create greater opportunities for businesses to grow in Cardiff Bay, to an overhaul of the city’s infrastructure in order to reconnect the city with the bay itself, his ambition was to encourage locals, and even tourists, to visit the area.

However, the proposals did have to overcome numerous obstacles. Concerns that marine engineering would food the local area proved to be the greatest objection. This was swiftly followed by protestations that the project was too costly and would not offer any real value to Cardiff. Yet despite opposition, Crickhowell fnally gained permission to commence with his regeneration project; work began in 1994.

The results of Crickhowell’s work speaks for itself. In 2000, work around the Bay was completed and the area was almost unrecognisable. New bars, restaurants and shops had opened, and locals and tourists were able to visit the area thanks to improved transportation links; money began to fow into the bay.

In later years, the regeneration project refocussed its attention to standard of living for locals, with a multitude of new fats being built in the city centre. Indeed, the standard of living for residents has improved dramatically within the past thirty-two years. However, there appears to be one group, whose needs have not been adequately met, despite their growing numbers. This group I refer to, is the city’s ever-increasing student population.

Indeed, Cardiff has experienced a rapid increase in its student population in recent decades. With three prestigious universities in the city, it is inevitable that students across the UK have focked to the area within the past two decades. An infux of students presents an excellent opportunity for Cardiff’s regeneration project. Not only do new students offer the promise of additional income for local businesses, from the local corner shop by the university to an independent fashion boutique in the city centre, they also present a new wave of prospective employees. Indeed, organisations across Cardiff will likely want to attract educated young talent to the area, to boost their productivity and proftability.

It would seem logical, therefore, to draw students in from the moment they begin considering university options. Whilst Cardiff has a sterling reputation for its nightlife, as well as academic rigor, it seems ftting that the universities provide the accommodation to match. Afterall, a pleasant experience at university would provide ample motivation for students to stay in the area.

However, evidence suggests that this is not the case. The universities themselves are struggling to keep up with increasing demand for student accommodation.

Thus, they are relying on external sources to fll the accommodation gap. Universities have been particularly reliant on HMOs; former residential properties, which have been converted into student accommodation. Whilst this is a sensible option to ensure all students have living quarters throughout their studies, such spaces are quite simply inadequate.

Recent fgures from Cardiff Council expose the extent of the problem. The council’s fgures revealed that 80 HMOs have fallen below licensing standards since 2014, posing a signifcant risk to their occupants.

Fire risks appear to be the greatest area of concern, with 67 of the 80 uninhabitable HMOs being affected, according to the Local Democracy Reporting Service. It was also reported that 44 homes suffered from damp and mould issues, whilst 35 were said to be vulnerable to entry by intruders and 33 faced major electrical hazards.

Unbelievably, 11 of the 80 problematic

HMOs were at a signifcant risk of structural collapse. With accommodation in Cardiff failing to meet an adequate living standard, this increases the likelihood of students turning to other cities to provide good quality living spaces, whilst simultaneously offering a vibrant nightlife and academic excellence. After all, students are no longer afraid to vocalise their dissatisfaction at sub-standard accommodation, and with the rise of social media, negative reputations spread very quickly. Until this issue is addressed, Cardiff could be at risk of losing its strong student reputation, scuppering hopes of future regeneration.

Encouragingly, however, the council and property developers appear to have found a solution to this problem; purpose build student accommodation (PBSA).

Private sector PBSA projects are proving to be a viable solution to meet the demand of a more vocal student population. Instead, PBSA not only offers students a high standard of living, it is raising the bar. PBSA complexes now offer state of the art facilities, including gyms, study rooms and even roof gardens. Additionally, developers ensure the complexes are in prime locations, usually a short walk from the town centre and offering easy access to universities.

The fgures here speak for themselves. Between 2010/11 and 2015/16, the number of students who actively wanted to live in PBSA increased by 137%. In stark contrast, the number of those who wanted to live in HMOs increased by a mere 4%. However, the issue of supply versus demand remains pivotal; it’s one thing to meet the demand of students but delivering the high quality that PBSA promises is vital to the success of regeneration.

To successfully meet the demand of students for PBSA complexes, whilst ensuring they deliver the high-quality living spaces promised, it is absolutely vital that private sector developers and Cardiff Council work together.

Indeed, Cardiff Council has introduced HMO regulations, however simply setting new guidelines does not seem to be improving living standards.

It is therefore imperative that Cardiff City Council forms close partnerships with the city’s developers to make sure that new-builds are safe and offer students a comfortable living space. The majority of these developers are determined to offer accommodation that is not only of the highest quality, but also meets the changing needs of the modern student. Therefore, cooperation between the two stakeholders will pave the way to higher standards across the board.

Experience Invest has frst-hand experience of working closely with the council throughout construction projects. In October 2019, the organisation worked closely with its sister company, Opto Property Group, to launch their latest PBSA project, Opto Student Cardiff.

Working with the council provides developers with the opportunity to ensure the project is in keeping with regulations and standards throughout the process; realising at the end of a completed project that the complex does not meet the set standards benefts no one.

In addition to the developer’s peace of mind, it also provides an element of reassurance for investors, whose fnancial commitment to the complex is absolutely vital to its success.

Whilst PBSA is not the only element driving Cardiff’s current regeneration project, one could argue that it is a determining factor to the ongoing success of regeneration in Cardiff. What’s more, its success could drive further investment into the area.

After all, developers are beginning to see themselves priced out of London. With government fgures revealing that land in London is 3.2 times more expensive than industrial land in other UK regions, developers and indeed property investors are looking elsewhere to get better value for their money.

Therefore, we see more and more development projects moving outside of London, and Cardiff is perfectly positioned to swoop in and claim investors. With land at a cheaper price than London, and a clear demand for PBSA, there is a perfect opportunity to increase investment in the area, whilst attracting new students.

Additionally, it also brings the prospect of generous returns to any property investment. There is an opportunity for all to reap the rewards, whilst also contributing to regeneration in the area.

The key question now, however, is whether all these factors will be capable of driving sustainable change in Cardiff. It is likely that continuous investment will be dependent on the PBSA projects, due to be completed over the next few years. Indeed, projects such as

Opto Student Cardiff will be a driving force to encourage greater investment, hence why the aforementioned relationships with Cardiff Council are so important. Much like the doubt cast on Lord Crickhowell’s regeneration proposal in 1987, politicians and residents alike demand reassurance that not only will the construction projects bring monetary rewards to the area but will not hinder their way of life.

However, if developers can prove they are capable of meeting the demand for student accommodation, whilst improving the student standard of living, confdence with inevitably be raised in the area.

Thus, further projects will continue, thereby increasing the opportunities available for locals and students.

This task will not be without its challenges. For example, Brexit uncertainty has inevitably paused numerous construction projects, both within and outside of Cardiff. However, there is emphasis on the term “pause”.

Despite uncertainty, reports suggest that property investors remain optimistic about the future of the market and remain poised to pounce on upcoming development projects.

It should also be noted that, despite the uncertainty, PBSA projects such as Opto Student Cardiff remain on schedule for construction to begin in January 2020, suggesting that the regeneration of Cardiff will continue to progress, despite a temporary slowdown in building projects.

Whilst it will prove to be a challenge for Cardiff Council and developers, the future does look bright for Cardiff. With PBSA projects presenting an opportunity for property investors to invest their money in reasonably priced off-plan property and make a generous proft from it, it is almost certain that the success of these projects will drive further investment into Cardiff.

Therefore, whilst there are challenging months and years ahead, the future remains bright in Cardiff. In the long term, I anticipate that the city will go from strength to strength, much to the delight of students, locals and investors alike.

Experience Invest provides specialist services to UK and overseas investors, corporate buyers and property developers.