Property investment in Newport is on the rise – and for a good reason too.
From its constant redevelopment to its high rental demand, there are many reasons that Newport could be a great investment opportunity for you.
Want to find out what they are?
Keep reading to learn more:
1. Affordable House Prices
Newport has gained a reputation as a great place to live for a low price, and it’s easy to see why.
According to the latest data from the UK House Price Index, the average price for a property in Newport is £223,798.
These property prices are below the national average (£276,755) and far lower than the nearby city of Cardiff (£250,224).
Most homebuyers and investors struggle to get on the UK’s property ladder, but affordable prices within Newport make the coastal city a more viable option.
2. Strong Rental Returns
Newport has a thriving buy to let market and is an area that boasts high rental yields, especially when compared to the UK average.
Currently, the average rent in Newport is £955 per month, which makes for an average yield in Newport of 5.12%.
Although rental returns in Newport are slightly lower than other Welsh cities, you’re getting access to these returns for a much lower entry cost.
3. Massive Capital Growth Potential
For those looking for fantastic property investment deals, Newport might be the one for you.
According to World Population Review, Newport is home to 319,221 people, with over 11k of those moving to the city since 2012.
It is expected that 21k people will move into the city over the next 10 years.
House prices within the city have seen an impressive 10.2% annual growth, according to the latest data from the UK House Price Index.
Although it may not have seen as much of an increase as the likes of Cardiff (11.6%) or Wrexham (13.3%), it’s clear that investment in the area is bringing more people to the area.
4. World-Class Transport Links
A city situated on the M4 motorway and just 12 miles from Cardiff and 30 miles from Bristol, one of Newport’s most substantial pull factors is its highly accessible location.
Newport railway station offers its residents frequent connections to Cardiff Central in just 12 minutes, Bristol Temple Meads in 31 minutes, and London Paddington in 96 minutes, showing how undeniably great this South Wales city is for commuters.
In 2018, the abolition of tolls on the Severn Bridge, connecting South Wales to England, has helped save residents around £1,400 a year in bridge tolls and paved the way for more development in the area.
5. A Hub of Regeneration
What was formally a Celtic settlement some 2,000 years ago, the South Wales city made a name for itself as a heavy industrial town through its coal, port, and steelworks.
But in the present day, Newport is a city built on the modern service industry, from Admiral and Go Compare to the Office For National Statistics (ONS) and the Intellectual Property Office.
From the £83 million investment in the International Convention Centre Wales (ICC) to the £100 million backing of the Friars Walk retail and leisure scheme, Newport has seen a wealth of investment since getting its city status 20 years ago.
You only need to look at the new £1 billion Glan Llyn suburb to see that development in this area is not taken lightly.
It seems that the investment just keeps coming.
Only recently, £12m was put into redeveloping Newport Market. This area will be the city’s tech hub, with Cardiff’s Tramshed Tech moving into the space generating more job opportunities in the sector.
This is without mentioning the Celtic Business Park in Llanwern or the Geraint Thomas National Velodrome of Wales (one of five internationally recognised indoor velodromes in Britain).
It’s clear that Newport is no longer the coastal town it once was:
It’s an up-and-coming city with more than enough job opportunities for hungry young professionals.
6. Huge Rental Demand
The area’s relative affordability has led to one of the largest tenant demands in the country – even more popular than London!
Research from the rental management platform, Howsy, shows that Newport is currently home to the UK’s highest level of tenant demand (35%).
A combination of its affordable house prices and the city’s regeneration has given Newport an irresistible pull for tenants.
Given that Newport is one of the UK’s fastest-moving property markets, landlords and property investors looking to invest in buy to let property will see a shorter time to sell than in other cities on the market.
7. Thriving Student City
Although you may be looking at residential properties within Newport, have you considered a student property investment in Newport?
If not, you never know, it could be the one for you…
The city is home to the University of South Wales’ Newport City Campus, where thousands of students attend each year.
Like elsewhere in the country, most students studying at the university will move to the area to be close to their place of study.
While it doesn’t offer much in the way of capital growth, it does provide property investors with huge rental returns and an opportunity to diversify their portfolios.
This applies especially to student investors looking at purpose-built student accommodation (PBSA), where over £5 billion was spent in the sector in 2020 – the highest level on record.
8. A Great Place to Live
It’s all good throwing money into a city, but that doesn’t count for anything if it’s not a place people want to live.
Luckily, that’s not an issue for Newport.
Placed ahead of Liverpool, Manchester and Newcastle, Newport was rated as the third best place to live in a recent survey by Adzuna in 2019.
The survey was based on the number of job vacancies and salaries in relation to the cost of renting and buying a home.
The same study ranked Newport as the fifth-best place where renters would get the best value for money.
Although the coastal city lost out to Aberdeen and Preston, third isn’t too bad.
