Work has begun to transform a long-unused industrial site in Newport into 43 affordable homes, providing a major boost to housing supply in one of Wales’ fastest-growing cities.
The Factory Road development in Allt-yr-yn will bring a disused site back into use, building homes as demand continues to rise across the city.
Newport’s population has grown to more than 150,000 in recent years, fuelled by its position between Cardiff and Bristol, with more people moving in and placing pressure on the housing market. At the same time, the city is bucking national trends, with the number of 25- to 34-year-olds increasing by more than 27% since the last census.
Hedyn has now started work on the site, which will be redeveloped into a new community of energy-efficient homes as part of its wider programme to unlock stalled or underused land across South-East Wales.
The scheme has secured Welsh Government Social Housing Grant funding, and will help address the shortage of affordable housing while supporting the ongoing regeneration of Newport.
Peter Crockett, Group Executive Director of Growth at Hedyn, said:
“Housing associations play a critical role in tackling the housing crisis, and that starts with working in partnership to unlock sites that deliver real benefits for communities.
“Factory Road is exactly the kind of opportunity we want to bring forward. By working closely with our local authority colleagues, we’re helping to rejuvenate underused land and support the wider regeneration of Newport.
“Sites like this can be transformed into homes, opportunities and brighter futures. With the scale and expertise to overcome barriers, we’re committed to delivering the homes communities need.
“Every home we build supports better health, stronger communities and greater opportunity. That’s why developments like Factory Road matter.”
Councillor Matthew Evans MBE said:
“Newport is an expanding city, and developments like Factory Road are vital to ensuring local people benefit from that growth.
“Bringing a long-underused site back into productive use in this way is exactly the kind of regeneration we want to see, creating safe and sustainable homes for current residents and future generations, and making a real difference to people’s lives.”
The new homes are being developed in partnership with Castell Group and will be built to modern methods of construction and environmental standards, helping residents reduce energy costs while providing affordable, secure housing close to jobs, schools, public transport and local services.
Modern methods of construction use innovative techniques, including precision-manufactured components built off-site and assembled on location. This approach reduces build times, improves quality and consistency, and minimises waste and disruption to local communities. As a result, the development will deliver high-quality, energy-efficient homes more quickly, helping to meet Newport’s growing demand for housing while supporting sustainability.
The development forms part of Hedyn's wider programme following the merger of Melin Homes and Newport City Homes in 2025, bringing together greater capacity and expertise to unlock stalled sites and deliver more homes.
Construction is now underway, with the first homes expected to be ready in spring 2028.
