Newport: residential letting demand set to rise as city shapes bright future | Red Key Property Services
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Newport: residential letting demand set to rise as the city shapes a bright new future

There has been a lot of excitement here in Newport, writes Jamie Langley, as the opening date of the sparkling new Friars Walk retail and leisure development gets ever closer.

But the long-awaited ceremonies on 12 November won’t simply mark a big day for those who enjoy their shopping or taking in the latest blockbuster. It’s one more massive step forward for the city as it shapes a bright new future for its citizens.

And the implications for the housing market are huge, especially the letting sector. Let me explain.

Newport – if we are honest – has played second fiddle to the two bigger neighbours, Bristol and Cardiff, for far too long.

Yes, it’s done well in attracting good employers over the years, companies and public sector organisations who recognize the skilled workforce on the doorstep as a real asset. But as a city (and before 2002, a town) it has missed out on the cultural, retail and leisure offers that would have given Newport cachet as a destination.

But what it has had is excellent housing – and plenty of it. The availability of land and a willingness by the local authority to see Newport not only meet demand but keep on expanding has meant that – in this part of the UK at least – local people have had a fantastic choice of good quality housing at sensible prices.

And that includes homes enjoying a superb riverside location.

Not everyone who lives in Newport works here either: that availability of sensibly priced homes – together with excellent local schools – has meant large numbers choosing to live in Newport and commute to Cardiff or Bristol.

So what will the changes afoot in Newport do to change this dynamic?

The list of major projects coming to fruition or in the pipeline reads like a wish list for any city looking to really put itself on the map.

In the last few years we have seen a world-class university campus take shape, a revitalised railway station forming the new gateway to the city together with a new look bus station. Great new business space has come onto the market. The waterfront has been transformed into a vibrant place to live and work… and then we have Friars Walk bringing top names to the city centre including Debenhams, Next, Top Shop, Cosmo and Cineworld.

People living here will also want to spend more of their leisure time here too. Importantly, we won’t be seeing so many of those locally owned pounds being exported to other locations along the M4 – they will be spent and recycled locally, helping to create more jobs and prosperity.

In total terms, around a quarter of a billion pounds has been pumped into Newport, regenerating it from the bottom up.

In lots of ways, it’s a shame that the NATO Summit, which brought the world’s media to our doorstep, took place last September in Newport: another year down the line and it’s already a very different place: more confident, more dynamic, more prosperous. Another year and it will have moved on even further.

That said, we’ve always punched above our weight locally in putting ourselves in the spotlight, so I firmly expect us to attract another global event soon!

So what are the implications of all of this positive news to the residential property sector?

It is certain to give a further fillip to the already buoyant housing market, firming up demand – and with it ensuring that those already in the housing market will see real capital growth. That is excellent news for all those currently buying new homes in the fantastic new Loftus Garden Village… itself a model of how to achieve real and sustainable quality of life in the 21st century.

Over the past few years, the city’s landlords have achieved an excellent return on their investment in terms of rental income – typically around 5% net. I fully expect the growing desirability of Newport to result in house price rises well above inflation over the next few years, giving sound capital growth to investors too.

That makes the last few months of 2015 a great time to invest in buy to let.

And if you’d like to know more about the sort of returns we could deliver for your investment pounds, get in touch. We can point you towards the locations we see demand growing for rental property – and where you’re likely to get the best ROI.

 

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