The Newport housing market has kicked off 2025 with its strongest start in years.
This surge in activity is driven by an influx of buyers, particularly those working in nearby cities like Cardiff and Bristol, who are drawn by Newport's more affordable housing options.
Tony Jones, a residential consultant at m2 Estate Agents, told the Business News Wales Newport Business podcast that more than 500 new instructions have been listed since the beginning of January, with nearly 400 sales agreed.
” Agreed sales are approximately 24% of available properties on the market, which is one of the highest conversion rates for years,” Jones said.
“We're seeing a lot of influx from outside areas as well, with people living in Newport but working elsewhere.”
The affordability of Newport, compared to its neighbours, is a significant pull factor. The average price of a house in Newport stands at £238,000, considerably less than Bristol's average of £385,000.
“For most people working in Bristol, living in Newport allows them to get to their office quicker than if they lived in the suburbs of Bristol,” Jones explained.
The trend is not only attracting those commuting to Bristol but also first-time buyers from Cardiff, drawn by the substantial price difference. Homes on the west side of Newport are seeing buyers save an average of £70,000 compared to Cardiff's housing prices.
Tom Benjamin, a financial planner at Sanctuary Chartered Financial Planners, highlighted the investment opportunities this trend presents, particularly in the rental market.
Also taking part in the podcast, he said:
“We're also seeing good demand from buy-to-let investors in Newport due to the strong rental yields and the recent drop in buy-to-let mortgage rates.”
Benjamin pointed out a potential market gap for high-end Houses in Multiple Occupation (HMOs) targeted at young professionals, a niche that is well-explored in Bristol as well as Cardiff and Bath, but still nascent in Newport.
“There's a potential gap in the market in Newport for HMOs – if the city is trying to attract young professionals with that type of housing,” Benjamin explained.
He sees this as an opportunity for investors to create high-standard, affordable living spaces for postgraduates and young professionals in their first jobs, enriching Newport's residential market further.
