Splott Development Finance

Splott is undergoing a planning-led transformation, with Cardiff Council's Local Development Plan identifying several key development sites for residential and mixed-use development. The area benefits from relatively permissive planning policies for residential schemes, reflecting the council's desire to increase housing supply in this well-connected inner-city location. Key considerations include the area's industrial heritage (some sites require remediation), proximity to the Tremorfa industrial estate, and the need for schemes to contribute to the area's evolving character. Welsh water and drainage capacity should be confirmed early in the planning process.

Splott offers some of the most competitive development land values in inner Cardiff, with sites available from £500,000 to £1.5 million per acre — roughly 40-50% below Cardiff Bay prices. New build house values range from £200 to £260 per square foot, with apartments achieving £180 to £240 per square foot. Rental yields are strong at 5.5-7% gross, driven by demand from young professionals priced out of central Cardiff and Cardiff Bay. The South Wales Metro investment is expected to drive further value growth as connectivity improves.

Lender appetite for Splott has improved significantly in recent years as the area's regeneration trajectory becomes clearer. While the most conservative lenders may still prefer Cardiff Bay or Central Square, several specialist development lenders on our panel actively seek Splott exposure, recognising the value growth story. The Development Bank of Wales is particularly supportive of Splott projects that contribute to housing supply and community regeneration. Mezzanine lenders are comfortable with the area given strong profit margins driven by lower land costs.

Recent Splott development activity includes several new build housing schemes of 5-15 units, conversion projects of former commercial buildings, and land assembly for larger future phases. The area around Splott Road and Metal Street has seen particular activity, with completed schemes demonstrating strong sales velocity and rental uptake. Several larger sites are progressing through planning for schemes of 20-50+ units, signalling growing developer confidence in the area's trajectory.

Splott represents the best value-for-money development opportunity in inner Cardiff. Lower land costs mean higher development margins, while proximity to the city centre and South Wales Metro connectivity provide confident exit valuations. The area is ideal for SME housebuilders building schemes of 5-20 units and for developers targeting the strong rental market. First-mover advantage remains available in several sub-areas where land is still available at pre-regeneration pricing.