Skip to content

Newport Buy-to-Let Guide

Want to invest in the best property investment opportunities for 2024? Enquire with RWinvest today – we have amazing buy to let deals available with projected yields of up to 10-15%!

    All About Newport's Buy-to-Let Investment Credentials

    After gaining city status in 2002, Newport has been going from strength to strength.

    Newport is the third largest city in Wales and is sometimes referred to as Wales’ third city after Cardiff and Swansea. Regeneration efforts have made this relatively small UK city a buy-to-let hotspot, with significant rental demand and impressive capital value appreciation.

    In the buy-to-let investment world, it seems Newport has been punching above its weight, but how does it stack up to other areas?

    This guide will give you everything you need to know if you’re considering a buy-to-let property investment in Newport.

    Only £30,000 Deposit Required

    15% deposit secured for next 10 units only!

      Newport seaside

      Buy-to-Let Property Prices in Newport

      One advantage Newport can offer property investors is relatively cheap property prices. 

      According to Rightmove, Newport properties had an overall average cost of £248,001 over the last year. This is lower than the UK average of £261,500 as calculated by Zoopla for their July 2023 UK House Price Index.

      This makes Newport property 7% up on the previous year and 14% up compared to 2020. Newport property has experienced sizable capital appreciation in the last few years, bringing it to the attention of property investors.

      With the current state of the UK property market and economic uncertainty, it’s important to know whether or not this growth is predicted to continue. Property experts Savills forecast that capital value appreciation will be strong in Wales over the next five years, growing 11.1% by 2027.

      This is more promising than locations in the South of England, but the North West pips Wales at the post with a forecast of 11.7%.

      For an expansive look at the market, read our updated 2023/24 guide for the latest UK property market predictions.

      Lock in our 15% Deposit Deal Today

      Save around £40,000 on your deposit with our exclusive 15% deposit offer valid on the next 10 units only.

      Newport aerial view

      Buy-to-Let Rental Market in Newport

      According to housesforsaletorent.co.uk, the average rent in Newport is £864 per month.

      Compare this to the UK average rent of £1,243 (as per the HomeLet Rental Index), and you can see why Newport has attracted so many renters in recent years.

      In 2020, Newport was found to be the UK city with the most rental demand in a study by Howsy, an online letting agent. This explosion in rental demand has primarily been driven by Newport’s reputation as an affordable residential area for commuters. It is especially attractive to those who work in nearby cities with a particularly high cost of living.

      For investors interested in student buy-to-let, the area also has a prominent student population, thanks to the University of South Wales Newport campus.

      However, it should be noted that the student population is not as thriving as it once was due to the closure of the Caerleon campus in 2016.

      Completed, Furnished 2-Bed Apartment in Prime L1

      We are now welcoming offers on this city centre property in a previously sold-out development. Get in touch and get your offer in.

      Newport mall

      Buy-to-Let Investment in Newport: Area Breakdown

      Suburbs to the east of the River Usk, such as St. Julians, Ringland and Glan Llyn, are popular areas of residence close to the city centre. Suburbs such as Chepstow, Sedbury, and Beachley are further east and seen as more upmarket with pricier property and higher rent.

      The City Centre is desirable for renters due to convenient transport, easy access to amenities, and proximity to many jobs.

      In general, the more central areas of Newport are more affordable, with pricier locations in the outer districts. 

      Villages and towns on the way out of Newport, such as Caerleon and Rogerstone, are popular with commuters but have more expensive property prices for investors.

      Newport City Centre (NP20)

      Average Property Prices in Newport City Centre

      £217,670

      Average Rental Yield in Newport City Centre

      4.64%

      St. Julians

      Average Property Prices in St. Julians

      £216,400

      Average Rental Yield in St. Julians

      4.74%

      Chepstow (NP16)

      Average Property Prices in Chepstow

      £380,886

      Average Rental Yield in Chepstow

      3.14%

      Caerleon

      Average Property Prices in Caerleon

      £257,042

      Average Rental Yield in Caerleon

      4.01%

      (Average property prices taken from Rightmove, rental yield estimates calculated with figures from housesforsaletorent.co.uk)

      £152k Required on Luxury 3-Bed Penthouse

      14th floor 3-bed apartment with HUGE assured NET rental income and spa access.

        What is the Best Area of Newport to Invest in?

        Although they are attractive places to live, the heftier property price tags in outer towns such as Caerleon can make for some disappointing rental yields and a high financial barrier to entry for buy-to-let investors.

        The same can be said of the outer eastern suburbs, such as Chepstow, as these areas have the highest property prices in Newport.

        The city centre can offer good rental yields and high demand, but the top pick is the inner suburbs to the east of the centre, where buy-to-let investors can find cheaper property and generous rental yields. This includes areas like St. Julians, Ringland, and the new suburb of Glan Llyn.

        Looking for your next buy-to-let opportunity? Discover the best places to invest in UK property for beginners with RWinvest!

        Foreign Investment in the UK 2023/24

        Based overseas? This is the perfect guide for property investors looking to buy property in the UK.

        Download Guide

        Off-Plan vs Completed Property

        The ultimate guide to help you choose whether to invest in off plan or completed property in 2024.

        Download Guide
        Person pointing at stacks of block

        Why You Should Consider a Buy-to-Let Investment in Newport

        High Rental Demand

        As mentioned, Newport was crowned as the UK city with the most demand for rental property in 2020, and according to the 2021 census, the population has grown massively.

        This unassuming Welsh town-turned-city seems to have proved itself an attractive place to call home, and the rental demand is proof of that. So, what’s so great about Newport?

        This year, it was ranked as the second most desirable city in the UK, based on several factors such as affordability, healthcare, and broadband coverage.

        As previously mentioned, the city is an excellent place for commuters to live due to its location, lower cost of living, and great transport links. This demand from commuters seems to be driving the area’s popularity as a property hotspot.

        Newport is a convergence point for many transport networks as it is one of the first major urban areas passed through when entering Wales from South England. These excellent transport links are a big bonus for renters looking to commute.

        For example, Newport has been found to be the best value place to reside for those commuting into Bristol, with frequent direct trains and a journey time of just 31 minutes. It also offers good access to Cardiff, which is just a 25-minute drive away. This is a great area for property investors as is looking at investment property for sale in London.

        The removal of the tolls on the River Severn caused a surge in Newport’s population, leading it to be named the fastest-moving property market in the UK in 2018.

        Newport sits on the M4 Corridor that runs from London to South Wales. This stretch is known as a home to many technology companies and is sometimes referred to as the UK’s answer to Silicon Valley.

        It is the main route into South Wales from England, connecting London, Slough, Bracknell, Maidenhead, Reading, Newbury, Swindon, Bath, Bristol, Newport, Cardiff, Port Talbot and Swansea.

        This makes Newport especially well-placed commercially and a convenient residence for many types of commuters to various towns and cities.

        Regeneration

        Major regeneration projects have been implemented across Newport, with the City Council calling it ‘one of the most significant regeneration programmes in the UK’.

        Ambitious projects can be found in various parts of Newport, including £24 million set aside for an overhaul of Ringland, one of the most deprived areas in the region. In another impressive project, a whole new sustainable suburb called Glan Llyn was created on the grounds of the former Llanwern Steelworks. Work started in 2004, and it is now a fully functioning community. It continues to be improved upon even now and is slated for completion in 2028.

        In 2018, the City Centre Masterplan was announced, targeting three large areas of central Newport with short-term, medium-term, and long-term projects. For example, £90 million was spent recently on regeneration efforts around Friars Walk shopping centre.

        Work has also begun on a long-term project by Newport City Homes to revitalise the Pillgwenlly area, locally known as Pill.

        This future-thinking and generous property investment means that Newport property is set to grow in value over the next few years and likely continue to attract even more rental demand.

        For more on sustainability in property investment, see our overview of Manchester Regeneration Projects.

        RWinvest Investment Finder

        Find the Perfect Investment for you.

          What's your investment objective?

          Minimum investment of £40,000

          What's your estimated budget?

          What areas are you interested in?

          What size property interests you?

          Your exclusive brochure is ready!

          modern apartment building in city. front exterior of newly built apartment block with balconies. city living in the UK

          Newport New Builds

          Newport can be considered one of the up-and-coming buy-to-let areas, showing impressive capital appreciation and an explosion in rental demand. Taking a bet on Newport’s future is one way a property investor can make big returns, but it could be considered riskier.

          Despite the surge in rental demand and ambitious regeneration efforts, Newport can still be described as one of the most deprived areas in Wales, according to a report published last year.

          Many property investors still turn to more established cities with higher profiles for a safer investment.

          Properties in major cities in the North of England, such as flats for sale in Liverpool City Centre, have lower prices on average when compared with Newport and can offer higher rental yields.

          What is a Good Rental Yield? Find Out in Our FREE Guide

          How to calculate rental yields, plus which UK hotspots offer the strongest rental returns.

          Off-Plan Property

          Off-Plan Property in Newport

          As buy-to-let investors turn their attention to new build properties, off-plan investment is rising in popularity as a strategy to get better value for money when investing in new build projects. By investing off-plan, meaning during the planning or construction phase of the development, investors can take advantage of below-market prices.

          There may be some options for off-plan investment in Newport, but generally opportunities will be limited.

          Off-plan investment opportunities are still often concentrated in more major cities with more guaranteed demand and good potential for capital appreciation. For example, London, Liverpool and Manchester. This also includes satellite and commuter towns in this area, meaning it could be worthwhile looking at off-plan property in Stockport or other areas of Greater Manchester.

          Save £5,000 On Your Next Purchase

          Sign Up to our newsletter and receive a Discount Code for our latest property launch.

            Coins-how-much

            How Does Newport Compare to Other UK Regions When it Comes to Buy-to-Let?

            Newport can be considered one of the up-and-coming buy-to-let areas, showing impressive capital appreciation and an explosion in rental demand. Taking a bet on Newport’s future is one way a property investor can make big returns, but it could be considered riskier.

            Despite the surge in rental demand and ambitious regeneration efforts, Newport can still be described as one of the most deprived areas in Wales, according to a report published last year.

            Many property investors still turn to more established cities with higher profiles for a safer investment.

            Properties in major cities in the North of England, such as flats for sale in Liverpool City Centre, have lower prices on average when compared with Newport and can offer higher rental yields.

            Want to Invest in Newport in 2024?

            Newport is an emerging city in the buy-to-let property scene and has proven itself as a desirable place to live for renters. 

            Investment and regeneration have bumped the population, and rental demand for Newport has skyrocketed. This is why choosing a low risk investments in the UK is a good choice for property investors.

            Now is the best time to invest in an up-and-coming city like Newport to see the benefits of capital appreciation and rental growth later.

            But for a more stable investment, it may be best to look at major northern cities to get the advantage of lower-than-average property prices and higher rental yields.

            Stay prepared with RWinvest! Our insights provide the latest from the UK property market, giving readers everything they need to know before starting! 

            See our most recent guides below:

            Map of Newport

            Avatar photo
            Author

            Jessica Ferris

            LinkedIn Logo Muck Rack Logo

            Jessica is a property content writer at RWinvest. Keeping a close eye on the UK property market, Jessica helps our readers stay informed and up to date on the latest market news and statistics.

            Disclaimer

            Contact Us

            Want to Get in Touch?

            Fill in the form to contact us today and a member of our award-winning property team will be in touch to help.

              I can honestly say they have put my mind at rest from day one answering all my questions I had , true professionals, I am not experienced in buying off plan or for a rental income but I have to say the process has been smooth from sales to Chloe in client care and now I’m handed over to the final stage for the site visits
              I feel very relaxed and happy with how amazing the team have been. I I can’t wait now to see the end built ! Thanks 🙏

              Kelly Webber

              Google Reviews Logo

              I have had the pleasure of experiencing exceptional customer service from RWinvest. Adam and Michelle were remarkable and were exceedingly supportive in facilitating the acquisition of two properties in Liverpool, at "The Gateway." Their guidance was instrumental in the purchase of the properties and I express my utmost satisfaction with their assistance, and I am inclined to not only endorse but also consider any property advertised by RWinvest.

              Narendra Rai

              Google Reviews Logo

              I am very happy and satisfied with RWinvest. Their team was always responsive, supportive and friendly throughout my investment process. Thomas from RWinvest team was especially very supportive and he made sure that I have all the necessary information at the right time. He helped me with all my queries, and helped me to complete my investment process smoothly and with peace of mind.

              Babak

              Arrow left
              Arrow right
              N/A