Newport Property Investment: Complete 2022 Guide

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Want to make a property investment in Newport?

(The one in South Wales, that is – not the one in Shropshire or the Isle of Wight!)

The student city has a population of over 151,000, making it the third-largest city in Wales.

A relatively new city, Newport gained city status in 2002 and has since had its profile raised, paving the way for more development and investment.

But is property investment in Newport the right move for you?

On this page, you’ll learn whether an investment in Newport is something you should (or shouldn’t) do.

Let’s jump right into it:

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The Mill, Liverpool

The Mill

Embankment Exchange

One Park Lane

Newport Property Market Overview

£223,798 

The average Newport property price is £223,798 – that’s £50k below the UK average.

 

No.1 

The South Wales city boasts the highest level of tenant demand in the UK (35%), according to Howsy.

 

10.2%

According to the latest data from the UK House Price Index, there has been an impressive 10.2% annual growth in house prices within the city.

 

No.3 

Newport was rated as the third best place to live in a recent survey by Adzuna, based on the number of job vacancies and salaries related to the cost of renting or buying a home.

£223,798 

The average Newport property price is £223,798 – that’s £50k below the UK average.

 

No.1 

The South Wales city boasts the highest level of tenant demand in the UK (35%), according to Howsy.

 

10.2%

According to the latest data from the UK House Price Index, there has been an impressive 10.2% annual growth in house prices within the city.

 

No.3 

Newport was rated as the third best place to live in a recent survey by Adzuna, based on the number of job vacancies and salaries related to the cost of renting or buying a home.

Why Invest in Newport?

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.

Average Yields

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.

Capital Growth

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.

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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.

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Heaps Mill

Merchant's Wharf

The Hive

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.

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Newport Property Market Forecast 2022

We know what you might be asking yourself:

Are house prices rising in Wales?

The answer is yes.

In February 2022, the average house price in Wales had risen by 14.2% within a year, with a positive growth forecast for the coming years.

According to the JLL residential forecast 2022-2026, house prices in Wales are expected to rise by 2.8% in the next five years – and that’s before a 3.5% rise in both 2022 and 2023.

Newport Property Market Forecast 2022

While it is not seeing as much growth as Bristol or South West England, substantial growth is predicted in the coming years.

It has been predicted by World Population Review that by 2031 there will be an extra 21k people living in Newport, meaning that there will be even more demand for housing.

Best Areas to Invest in Newport Buy to Let

From the city centre and its inner suburbs to the quieter streets outside the city, there’s so much to choose from when it comes to Newport.

We’ve broken it down to the top 5 best postcodes to invest in within Newport.

Based on our research, the following five postcodes rank amongst the best areas for Newport property investment:

  1. NP19
  2. NP16
  3. NP15
  4. NP18
  5. NP10

NP19

Average house price in NP16: £182,247

Average Rental Yield in NP16: 7.19%

Investors looking for a rental property with a high yield should look no further than our number one pick – NP19.

The postcode boasts a relatively low average property price of £182,247 with huge returns of 7.19%.

Investors in the region can expect an average monthly income of £1,092 PCM as it’s home to some of the most desirable areas in Newport.

Lying just east of Newport City Centre, areas within the NP19 postcode include Beechwood, Maindee, St. Julians, and Ringland. The new suburb of Glan Llyn is also in the east of the city.

The area offers easy access to the M4, A449, and A40 towards destinations in England and is often recognised as one of the best areas to live in Newport.

NP16

Average house price in NP16: £341,717

Average Rental Yield in NP16: 3.90%

Second on the list is NP16, an area that boasts the city region’s most significant average income of £1,111 PCM.

However, due to its expensive property price of £341,717, property investors should expect to see an average rental yield of 3.90%.

This suburb lies in the far east of the city region and is home to Chepstow, Sedbury and Beachley.

NP15

Average house price in NP16: £415,353 

Average Rental Yield in NP16: 3.00% 

Third on the list is NP15, and much like the NP16 postcode, NP15 offers investors high monthly rent payments with a significantly lower yield.

NP15 postcode includes Usk and Raglan and is currently generating returns of 3.00%.

This is mainly down to the average price for a property being the largest within the city region at £415,353, while the average rental income is at £1,037 PCM.

NP18

Average house price in NP16: £305,795

Average Rental Yield in NP16: 3.80% 

Investors in the NP18 postcode can expect property prices above the national average of £305,795 and an average monthly rent of £968.

Because of the large house price, landlords usually receive an average rental yield of 3.80% – 0.42% more than the national average.

Caerleon, Langstone, Llanwern, Nash and Llandegveth Underwood all fall under the NP18 postcode. Tenants in this area will benefit from the new railway station being planned for Llanwern.

NP10

Average house price in NP16: £262,513 

Average Rental Yield in NP16: 4.23%

Sitting west of Newport City Centre is our final pick, the NP10 postcode, an area encompassing Bassaleg, Duffryn and Rogerstone.

Investors in this postcode can expect a larger rental yield of 4.23% and average monthly rent payments of £926.

Properties in this area sit just below the UK average at £262,513.

Not only are properties some of the most desirable in the city due to their excellent access to the city centre, but also due to the large employers in the postcode, like the database management firm Next Generation Data.

Conclusion: Should You Make A Property Investment Newport 2022?

So, why invest in Newport?

The city is constantly seeing development, bringing in more young professionals and families alike for it.

Additionally, Newport boasts the highest level of tenant demand in the UK (35%) and is constantly seeing a growth in its house prices.

However, other neighbouring cities, like Swansea and Cardiff, have offered investors better returns in previous years.

So, what’s the bottom line?

Investors looking for rental property will see good returns, but that depends on your property’s appeal to tenants.

Just because you buy a property in Swansea doesn’t necessarily mean you’ll see higher returns than in Newport.

No matter where you invest, research is integral to finding the right property for you that matches your budget and goals.

You can start your UK property investment search today by using RWinvest – the UK’s leading property investment company.

Just scroll up to find our search and begin your property hunt at the touch of a button.

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