Newport’s housing market has been on the up for some time, a trend largely put down to the announcement tolls on the two Severn bridges will be scrapped by the end of the year. With less than six months to go until the tolls are scrapped, IAN CRAIG takes a look at the issue

IN THE past year or so it seems Newport’s housing market has completely changed.

This time last year the Argus reported house prices in the city had risen by 5.1 per cent in the first three months of 2017 compared with the start of 2016, with the average home then costing £176,090.

And the trend seems to have continued, with the latest figures from the Principality Building Society showing prices in the city were up 4.7 per cent in April compared to 12 months previously, with the average house now costing £185,869. In comparison, prices across Wales increased by an average of 2.9 per cent over the same period and are now £181,320, making homes in Newport more expensive than the national average.

In comparison, the UK-wide housing market has been slowing, while prices have increased by 2.4 per cent. The average house price in the UK is now £213,618 - just £27,749 more than in Newport.

And the average sale is now reportedly completing in just 52 days - down one third from 72 days.

So clearly the days of Newport being seen as a cheap place to buy a home are coming to an end.

The trend has been largely put down to the impending end of tolls on the two Severn bridges. Estate agents have said many people who work in Bristol and the south west of England, where homes can cost twice as much as in Newport, snapping up homes in the city, no longer faced with having to shell out for crossing the estuary on a daily basis.

One of the developers which has been benefitting from the trend is Redrow, which is behind developments such as the Mon Bank estate off Cardiff Road.

The company’s sales director for south Wales Beverly Wookey said demand for the homes at Mon Bank had proven particularly high.

“This development was extremely successful as there was strong demand for high quality new homes in the area,” she said. “The introduction of Welsh Government’s Help To Buy scheme, which was launched at the beginning of this development, stimulated the market and has enabled purchasers to move onto the property ladder.

“There were some buyers from Bristol who were looking for more home for their money but the majority of purchasers came from the local area.

“Our current developments, The Maltings at Llantarnam and Carnegie Court at Bassaleg, are both selling exceptionally well and I would attribute this to the fantastic locations with good catchment areas for schools.”

She added she expected demand would only increase once the bridge tolls are scrapped.

“Buyers will easily be able to commute to Bristol and beyond and will be attracted by the great quality of life that they can achieve in south Wales,” she said.

Through the Help to Buy scheme the Welsh Government will provide a shared equity loan of up to 20 per cent of a property’s value, meaning buyers with a five per cent deposit only need to take out a mortgage for the remaining 75 per cent. This has been credited with helping thousands of first time buyers get on the housing ladder and keeping the property market moving.

Earlier this month Richard Hayward of Treforest Properties, which is redeveloping Olympia House in Upper Dock Street, Newport’s former passport office, into flats said demand for the flats was “far outstripping supply”.

Mr Hayward said the first phase of six flats at the building, which has been empty since 2013, had sold without even being advertised.

He said: “Demand is far outstripping supply. I’ve never known this in the 40 years I’ve been working here.”

“Newport is becoming a lifestyle town. I can’t believe that’s happening, but it finally is.

“That’s good news for traders and its especially good news for the council who have tried very hard to build up the city.”

So it’s great news if you’re an estate agent or looking to sell your house. But what if you’re a young person looking to get onto the housing ladder for the first time?

Newport West AM Jayne Bryant has raised concerns that first time buyers from Newport are being priced out of the market and face having to move away from their families.

“Over the last year, Newport has become a property hotspot,” she said. “It’s popular place to live and the pressure for new homes is considerable and all indications are that it’s likely to grow.

“I know this a concern of many Newport residents.”

She added: “I’m glad that the Welsh Government’s Help to Buy scheme has helped over 1,200 first-time buyers to purchase homes in Newport. That’s one fifth of all help to buy homes purchased in Wales.

“However, there is no doubt that increasing rents and house prices continue to put a strain on young people and families.

“I’m particularly concerned about the pressure on those who could find it difficult to afford the rents and young first time buyers being priced out of the market.

“Newport has much to offer and the Welsh Government, Newport City Council and social landlords must continue to work together to support those who want to live here.”

And Newport East AM John Griffiths said a lot of constituents had been in touch with him concerned about the availability of housing and rising prices.

“It has been an issue for quite some time,” he said.

“What people are saying is we need to be building more housing. There is a lot of house building in Newport, and more is under way, but we need more affordable housing

“There is a lot of detached and semi-detached executive-style housing, but there’s not a lot for first time buyers.”

Mr Griffiths continued private sector rents could be so high prospective first time buyers are unable to save for a deposit.

“If you’ve already got a property it’s not a disadvantage, but if you’re yet to get on the housing ladder it is a real problem.

“Young people are finding it more and more difficult to buy their own homes.”

His Parliamentary counterpart Jessica Morden has previously raised similar concerns, and said she remained worried about the implications of the trend.

She said: “Newport and Severnside is a fantastic place to live and it’s brilliant that more and more people are recognising this.

“With the creation of hundreds of jobs at Spanish train company CAF, the new International Convention Centre at the Celtic Manor and the potential of the Metro system, it’s clear that Newport is growing and a great place to live and operate businesses.

“But this does bring big challenges which I’ve raised in speeches in Parliament this year - the need for affordable housing, more capacity on rail services and investment in infrastructure.

“We need all levels of government working to address this and I will keep raising this with ministers.”

Others have raised concerns about the trend, too.

Speaking in the Senedd last month South Wales Central AM Andrew RT Davies said he was concerned house prices were outstripping earnings. Addressing Carwyn Jones, the Conservative AM said the market needs “a complete change, starting on the supply side”.

“Since March 2018 the average house price in Wales is now over £181,000,” he said. “That’s between six and seven times the average income. That’s why we have a housing crisis.

“It’s not your fault in particular – it’s all of us who have been active in politics for the last 25 to 30 years.”

Mr Jones replied: “Prices will go up, but it’s making sure they don’t go up at an astronomical rate, and that means increasing the supply, but making sure that the supply properly matches the demand that’s there.

“There’s no point increasing the supply of high-end housing if the market isn’t going to help those people who are at the lowest end of the income scale, which is why I’ve always emphasised the fact that, yes, we need social housing, yes, we need to make sure that there is more good private rented accommodation, yes, we need more houses for purchase.

“But we also need to look at other ways in which people can get a stake in property without having to buy a house outright, which would be beyond them financially.”

Although the UK Government has not yet announced when the tolls will be stopped, it has said it will be by the end of the year. Many are predicting they will end on December 31.