Where to Buy Property Investments in Newport: Yields of 5.5%
Newport is a city in south-east Wales on the M4 corridor, 12 miles east of Cardiff and 30 miles west of Bristol. Gross rental yields range from 3.7% to 5.5% across the five postcodes with rental data, with NP19 delivering the highest returns. Average sold prices sit 22.4% below the England average, and the city's population grew 9.5% to 159,592 between the 2011 and 2021 censuses.
Newport's average sold price of £226,573 positions it above the Wales average of £214,883 but well below England's £291,865. That dual benchmark matters for investors. Newport is not the cheapest city in Wales, but it offers M4 corridor access at a fraction of Bristol or Cardiff prices. Asking prices start from £196,714 in NP11, and rental data is available for 5 of the city's 7 postcodes.
This guide covers 7 postcodes in the Newport area from NP10 to NP44, centred on the City and County of Newport unitary authority (ONS code W06000022). The wider postcode district extends into parts of Caerphilly (NP11), Monmouthshire (NP26), and Torfaen (NP44). Investors comparing options in Wales may also consider Cardiff, Swansea, or Bristol across the Severn. Browse all our Wales location guides.
Article updated: April 2026
Newport Buy-to-Let Market Overview 2026
Newport sits on the M4 corridor between Cardiff and Bristol, offering affordable entry to a South Wales city with the highest population growth rate in the country.
- Average sold price: £226,573 (22.4% below England's £291,865)
- Asking price range: £196,714 (NP11) to £377,475 (NP18)
- Rental yields: 3.7% (NP18) to 5.5% (NP19) across postcodes with rental data
- Rental income: Monthly rents from £829 (NP11) to £1,185 (NP10)
- Price per sq ft: Sold prices from £188/sq ft (NP11) to £309/sq ft (NP26)
- Market activity: Sales ranging from 20 per month (NP18) to 49 per month (NP19)
- Deposit requirements: 30% deposits range from £59,014 (NP11) to £113,243 (NP18)
- Affordability ratios: Property prices from 5.4 to 10.3 times Newport's median annual salary of £36,533
Contents
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by Robert Jones, Founder of Property Investments UK
With two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: April 2026. All data is presented as provided by our sources without adjustments or amendments.
Why Invest in Newport?
Newport sits on the M4 corridor between Cardiff (12 miles west) and Bristol (30 miles east), giving residents direct motorway access to two major employment centres. That commuter dynamic creates rental demand from professionals who work in Cardiff or Bristol but live in Newport for the lower housing costs.
Between the 2011 and 2021 censuses, Newport's population grew from 145,736 to 159,592, a rise of 9.5%. That is the highest growth rate of any local authority in Wales. People are moving in, and the city's housing stock needs to keep up. For buy-to-let investors, population growth of that scale underpins long-term rental demand.
Newport's economy has diversified significantly since the closure of the Llanwern Steelworks in 2002. The city is now home to the UK's compound semiconductor cluster, anchored by companies like IQE and SPTS Technologies in the NP10 area. The Office for National Statistics (ONS) has its headquarters at the Newport campus, and the Intellectual Property Office (IPO) is based in the city. These public sector employers provide a stable employment base that most Welsh cities outside Cardiff cannot match.
The University of South Wales has a campus in Newport, contributing to the city's student and younger professional population. ICC Wales (the International Convention Centre), which opened in 2019 on the Celtic Manor site, has added a hospitality and events dimension to the local economy.
Earnings in Newport sit close to the Welsh median. The median annual salary is £36,533, compared to £36,353 across Wales and £39,125 for Great Britain. Newport's wages are marginally above the Welsh average, reflecting the mix of public sector, technology, and service industry roles available locally.
Newport Economic Summary
- Population: 159,592 (2021 Census). Growth of 9.5% from 2011.
- Median annual salary: £36,533 (Newport), £36,353 (Wales), £39,125 (Great Britain)
- Employment rate: 76.3% (Newport)
- Unemployment rate: 4.4% (Newport)
- Key employment sectors: Public sector (ONS, IPO), semiconductor technology, advanced manufacturing, hospitality and conventions, logistics
Source: ONS Census 2021, Nomis Labour Market Profile (ASHE 2025, Employment Oct 2024-Sep 2025)
Newport's employment rate of 76.3% sits above the Great Britain average of 75.6%. The unemployment rate of 4.4% is close to the national figure of 4.3%. For buy-to-let investors, these employment numbers indicate a stable local labour market without the sharp peaks and troughs that characterise cities dependent on a single employer or sector.
Regeneration and Investment in Newport
Newport's regeneration programme includes a £1 billion brownfield housing development, a £19.7 million net-zero leisure centre, and £17 million in Welsh Government city centre funding. The scale of the Glan Llyn project alone makes Newport one of the largest active brownfield regeneration sites in Wales.
- Glan Llyn (under construction, £1 billion+): The regeneration of the 600-acre former Llanwern Steelworks into a mixed-use community with up to 4,000 new homes and a million square feet of employment space. Over 850 homes have been completed. The latest phase, Locke Gardens, is a £105 million development adding 500 homes by 2028, delivered by Lovell and Pobl Group. Three new lakes, 80 acres of parkland, schools, and a local centre are part of the masterplan. Updates at Lovell Partnerships.
- Newport Leisure and Wellbeing Centre (under construction, £19.7 million): A new net-zero leisure centre on the city centre waterfront, one of the UK's first fully electric leisure facilities. The centre includes swimming pools, a fitness suite, community space, and a cafe. Construction by Wynne Construction, expected to open in 2026. More than 55% of the cost comes from external funding including the Welsh Government's Transforming Towns programme. Updates at Business News Wales.
- Transforming Towns City Centre Programme (ongoing, £17 million): £17 million of Welsh Government funding for Newport city centre since 2018 through the Targeted Regeneration Investment and Transforming Towns programmes. Projects include the conversion of Chartist Tower into a four-star hotel (£600k+ TRI funding), the restoration of the Grade II listed Market Arcade (£1.2 million TT grant), the Central Library and Museum refurbishment (£1.3 million TT funding), and a new indoor market (£2 million TRI loan). Updates at GOV.WALES.
New Builds in Newport
The Glan Llyn development on the former Llanwern Steelworks is delivering up to 4,000 new homes across 600 acres in the NP19 and NP10 postcode areas. Over 850 homes have been completed, with the £105 million Locke Gardens phase adding another 500 homes by 2028. This is the largest active new-build site in Newport and one of the biggest brownfield housing projects in Wales.
New-build stock in Newport is concentrated in the eastern postcodes. NP10 (Rogerstone, Bassaleg), where Glan Llyn sits, shows the highest one-year price growth in the dataset at 8.7% and a price per square foot of £291. Buyers looking at new builds in Newport should note that NP10's asking prices (£291,384) and per-foot costs sit well above the older stock in NP19 and NP20, reflecting the premium that new-build properties carry.
Newport Property Market Analysis
When Was the Last House Price Crash in Newport?
Newport's average house price fell 23.8% from its June 2007 peak of £153,271 to a March 2011 trough of £116,865, with a double-dip pattern that made recovery slower than most of Wales. The full history from the HM Land Registry House Price Index runs from January 1995 to December 2025, covering a prolonged recovery and a sharp pandemic-era surge.
- 1995-2000 (Slow start): Newport began 1995 at £45,977. Growth was steady but unspectacular. By January 2000, prices had reached £55,614. A gain of 20.9% over five years, largely tracking the Welsh housing market's gradual rise.
- 2000-2007 (The boom): Prices nearly tripled. From £55,614 in January 2000 to a peak of £153,271 in June 2007. The steepest growth came in 2004-2005 as cheap credit and strong demand pushed prices beyond what local wages could support. Newport's steel heritage was fading but the M4 corridor appeal was growing.
- 2007-2009 (The financial crisis): The initial crash took prices from £153,271 in June 2007 to £120,549 by September 2009. The worst annual change reading was -18.0% in January 2009. All property types fell: detached -17.5%, semi-detached -20.0%, terraced -20.8%, flats -22.0%. Newport's decline broadly tracked the wider Welsh and English markets during this phase.
- 2009-2011 (The double dip): Newport bounced briefly. By September 2010, prices had recovered to £133,626. Then the market fell again. By March 2011, Newport hit its ultimate trough at £116,865. That is 23.8% below the June 2007 peak. Wales as a whole bottomed at £116,562 in March 2009 and began recovering. Newport kept falling for another two years. The city's ongoing economic adjustment after the Llanwern steelworks closure contributed to this extended weakness.
Recovery and Growth (2011-2025)
- 2011-2013 (Stagnation): Prices traded sideways between £116,000 and £122,000 for over two years. By December 2013, the average was £117,288. Still 23.5% below the pre-crash peak.
- 2014-2016 (Recovery begins): Annual growth returned, hitting 10.5% in June 2014. Prices rose from £117,288 to £142,441 by December 2016. But the pre-crash peak of £153,271 remained out of reach.
- 2017 (Pre-crash peak recovered): Newport finally passed its pre-crash peak in December 2017 at £153,370. That recovery took over 10 years from the June 2007 high. Newport was slower to recover than England, where average prices passed pre-crash levels by 2014.
- 2018-2019 (Steady growth): Prices rose from £153,370 to £176,456 by March 2020. Consistent growth of 4-8% per year. The M4 corridor access and public sector employment provided a floor under the market.
- 2020-2022 (Pandemic surge): The stamp duty holiday and remote working trend lifted Newport significantly. Prices jumped from £176,456 in March 2020 to £220,790 by December 2022. That is 25.1% growth in under three years. Newport's relative affordability compared to Bristol and Cardiff made it a direct beneficiary of the lifestyle relocation trend.
- 2023-2024 (Rate shock): Interest rate rises cooled the market. Prices dipped from £220,790 in December 2022 to £215,109 by December 2023, then held at £214,945 through December 2024. A decline of 2.6% followed by a flat year. Mild compared to the 2008-2011 crash.
- 2025 (Recovery): Prices recovered to £226,573 by December 2025 with annual growth of 5.4%. Newport now sits 47.8% above its pre-crash peak.
Property Type Performance During the 2007-2011 Crash
- Detached houses: Peak £253,671 → Trough £207,458 (decline of 18.2%)
- Semi-detached houses: Peak £156,933 → Trough £121,825 (decline of 22.4%)
- Terraced houses: Peak £126,000 → Trough £94,935 (decline of 24.7%)
- Flats and maisonettes: Peak £98,535 → Trough £68,842 (decline of 30.1%)
Flats took the heaviest hit at 30.1%, nearly double the detached decline of 18.2%. Terraced properties, which dominate Newport's housing stock, fell 24.7%. For context, Wales as a whole declined 18.1% (peak August 2007 to trough March 2009) and England fell 18.2% (peak September 2007 to trough March 2009). Newport's deeper 23.8% overall decline and double-dip pattern made it one of the harder-hit Welsh cities.
Long-Term Property Value Growth in Newport
- 5 years (2020-2025): +23.7% (£183,153 to £226,573)
- 10 years (2015-2025): +70.5% (£132,885 to £226,573)
- 15 years (2010-2025): +85.9% (£121,899 to £226,573)
- 20 years (2005-2025): +70.7% (£132,724 to £226,573)
- 30 years (1995-2025): +392.8% (£45,977 to £226,573)
The 20-year figure (+70.7%) is lower than the 15-year (+85.9%) because prices in December 2005 were higher than in December 2010. The crash intervened. An investor who bought in 2005 near the top of the boom would have endured a decade of negative or flat returns before seeing meaningful growth. That timeline is the reference point for assessing downside risk in Newport.
Source: HM Land Registry House Price Index for Newport, January 1995 to December 2025.
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View Property DealsSold House Prices in Newport
The latest sold house price index from the Land Registry shows Newport sitting in an unusual position. The headline figure of £226,573 is 22.4% below England's £291,865 but 5.4% above Wales's £214,883. Newport is expensive by Welsh standards yet deeply discounted against the English market. That gap creates the investment case for cross-border buyers looking west along the M4.
Flats in Newport average £116,585. That is 46.8% below the England average of £219,340. No other property type comes close to that discount. It is the widest gap in Newport's market and reflects a combination of older purpose-built stock and an absence of the premium new-build apartment market that inflates flat prices in Bristol or Cardiff. Flats are also the only type where Newport sits below the Wales average (£130,402), a discount of 10.6%.
| Property Type | Newport Average | England Average | Difference |
|---|---|---|---|
| Detached houses | £397,670 | £471,667 | -15.7% |
| Semi-detached houses | £243,591 | £289,135 | -15.8% |
| Terraced houses | £186,741 | £244,830 | -23.7% |
| Flats and maisonettes | £116,585 | £219,340 | -46.8% |
| All property types | £226,573 | £291,865 | -22.4% |
Detached houses show a 15.7% discount and semi-detached 15.8% against England. These are the narrowest gaps in the table. Newport's detached stock at £397,670 is concentrated in NP18 (Caerleon) and NP26 (Caldicot), where larger properties and established residential areas attract owner-occupiers willing to pay closer to English regional prices.
Terraced houses average £186,741, a 23.7% discount to England. The Victorian and Edwardian terraces in NP19 (St Julians, Ringland) and NP20 (City Centre, Malpas) form the backbone of Newport's rental stock. They offer some of the lowest entry prices in the city and the strongest combination of yield and tenant demand. Against Wales, Newport's terraced prices sit 8.3% above the Welsh average of £172,365.
Newport's position above Wales on four of five property types (all except flats) reflects the M4 corridor premium. Newport is not a typical Welsh market. Its proximity to Bristol and Cardiff inflates values relative to the rest of Wales while keeping them well below English benchmarks.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: April 2026. All data is presented as provided by our sources without adjustments or amendments.
Price Per Square Foot in Newport
Newport's price per square foot ranges from £188 in NP11 to £309 in NP26, a spread of 1.6x across seven postcodes. Price per square foot strips out size bias. A postcode might look expensive simply because it has larger properties. Per-foot pricing shows what you are paying for space, making it the closest measure to underlying value across different property types.
The gap between the cheapest and most expensive space in Newport is narrower than many English cities, suggesting less extreme neighbourhood-level price variation.
| Rank | Area | Price Per Sq Ft |
|---|---|---|
| 1 | NP11 (Risca, Crosskeys) | £188 |
| 2 | NP19 (St Julians, Ringland) | £218 |
| 3 | NP20 (City Centre, Malpas) | £220 |
| 4 | NP44 (Cwmbran) | £229 |
| 5 | NP10 (Rogerstone, Bassaleg) | £291 |
| 6 | NP18 (Caerleon, Langstone) | £293 |
| 7 | NP26 (Caldicot, Magor) | £309 |
NP11 at £188 per square foot is the cheapest space in the Newport postcode area. Risca and Crosskeys sit in the northern valleys corridor where older terraced housing stock keeps per-foot costs low. NP11 also delivers the lowest asking prices (£196,714) and a gross yield of 5.1%. Investors buying here get more space per pound than anywhere else in the dataset.
NP19 and NP20 sit close together at £218 and £220 per square foot. These are the core residential postcodes of Newport city. The similarity in per-foot pricing tells you the underlying property stock is comparable, even though NP19 edges ahead on yield (5.5% vs 5.2%). The yield difference comes from higher rents in NP19 (£1,041 vs £968) rather than lower prices.
NP10, NP18, and NP26 form the premium tier at £291 to £309 per square foot. These are the outer postcodes where larger family homes and newer developments command higher rates. NP10 includes the Glan Llyn regeneration site, where new-build stock pushes per-foot prices above the older housing areas.
Figures reflect averages across all property types and ages. Individual values depend on condition, location within the postcode, and building age.
For Sale Asking Prices in Newport
Newport's asking prices range from £196,714 in NP11 to £377,475 in NP18. Asking prices reflect what sellers and agents think the market will pay, not what buyers actually paid. In a rising market, asking prices run ahead of sold prices. In a cooling market, they sit above what eventually transacts.
Three postcodes cluster below £232,000 (NP11, NP20, NP19), creating a tier of affordable entry points. The premium tier (NP10, NP26, NP18) starts at £291,384 and reflects the outer suburban and semi-rural postcodes. Investors seeking below market value properties may find opportunities in the sub-£232,000 tier where rental yields are strongest.
| Rank | Area | Average Asking Price |
|---|---|---|
| 1 | NP11 (Risca, Crosskeys) | £196,714 |
| 2 | NP20 (City Centre, Malpas) | £225,413 |
| 3 | NP19 (St Julians, Ringland) | £227,634 |
| 4 | NP44 (Cwmbran) | £231,701 |
| 5 | NP10 (Rogerstone, Bassaleg) | £291,384 |
| 6 | NP26 (Caldicot, Magor) | £357,086 |
| 7 | NP18 (Caerleon, Langstone) | £377,475 |
NP20 and NP19 sit within £2,300 of each other at £225,413 and £227,634. For investors, the entry price is essentially the same across these two central postcodes. The decision comes down to yield and tenant profile. NP19 delivers a higher yield (5.5% vs 5.2%) and stronger five-year growth (30.6% vs 11.9%). NP20 offers city centre proximity and the higher tenant turnover that comes with it.
NP18 Caerleon at £377,475 is the most expensive postcode and delivers the lowest yield at 3.7%. Caerleon's Roman heritage and established residential character attract families and professional owner-occupiers. This is not a yield play. NP26 at £357,086 has no rental data available, placing it outside the buy-to-let analysis entirely for most investors.
The mean asking price across all seven Newport postcodes is £272,487. That figure appears in the comparison section later, where Newport is measured against Cardiff, Swansea, Bristol, and Gloucester. Investors looking for renovation properties may find the steepest discounts below these averages in NP19 and NP20, where older housing stock offers scope for value-add refurbishment.
House Price Growth in Newport
All seven Newport postcodes delivered positive five-year growth, with NP19 leading at 30.6%. An investor who bought a £174,000 property in NP19 five years ago would be sitting on a property now asking £227,634. That is £53,600 in equity growth from one of Newport's most affordable entry points. The five-year figure matters most for buy-to-let. It captures a full market cycle and filters out short-term noise that one-year growth swings on.
| Area | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| NP19 (St Julians, Ringland) | 0.1% | 4.3% | 30.6% |
| NP11 (Risca, Crosskeys) | 3.2% | 7.9% | 30.5% |
| NP10 (Rogerstone, Bassaleg) | 8.7% | 11.7% | 25.1% |
| NP44 (Cwmbran) | -1.4% | 2.8% | 16.9% |
| NP18 (Caerleon, Langstone) | 0.1% | -4.2% | 12.8% |
| NP20 (City Centre, Malpas) | -2.2% | 3.6% | 11.9% |
| NP26 (Caldicot, Magor) | -4.4% | -7.2% | 11.0% |
NP19 and NP11 lead with near-identical five-year growth of 30.6% and 30.5%. These are two of the three most affordable postcodes in the dataset, and both delivered the strongest appreciation. The pattern is consistent with a market where price discovery moved from the bottom up. Buyers priced out of NP10 or NP18 turned to NP19 and NP11, pushing prices up from a lower base.
NP10 at 8.7% one-year growth is the strongest recent performer. Rogerstone and Bassaleg benefit from the ongoing Glan Llyn development, which brings new-build stock and infrastructure improvements that lift values across the wider postcode. NP10's three-year growth of 11.7% is also the highest in the table, suggesting sustained rather than one-off momentum.
NP26 shows weakness across all three timeframes. Negative one-year (-4.4%) and three-year (-7.2%) growth, with only 11.0% over five years. Caldicot and Magor are Monmouthshire commuter villages where higher asking prices (£357,086) leave less room for growth. No rental data is available for NP26, limiting its appeal as a buy-to-let postcode.
Monthly Property Sales in Newport
Newport records 221 property transactions per month across all seven postcodes, ranging from 20 in NP18 to 49 in NP19. NP11 Risca stands out with a turnover rate of 110%, meaning properties change hands faster than new stock comes to market. For buy-to-let investors, transaction volume is an exit strategy question. High volume and high turnover mean a liquid market where you can sell when you need to.
| Area | Sales Per Month | Turnover | Asking Price |
|---|---|---|---|
| NP19 (St Julians, Ringland) | 49 | 15% | £227,634 |
| NP20 (City Centre, Malpas) | 39 | 14% | £225,413 |
| NP11 (Risca, Crosskeys) | 36 | 110% | £196,714 |
| NP44 (Cwmbran) | 31 | 14% | £231,701 |
| NP10 (Rogerstone, Bassaleg) | 25 | 22% | £291,384 |
| NP26 (Caldicot, Magor) | 21 | 29% | £357,086 |
| NP18 (Caerleon, Langstone) | 20 | 21% | £377,475 |
NP19 leads on volume with 49 sales per month but has a low turnover of 15%. That tells you there is a large pool of housing stock in this postcode. Properties sell steadily but the overall market is deep. For investors, high volume with low turnover means plenty of buying opportunities without intense competition for each property.
NP11 at 110% turnover is the clear outlier. Properties in Risca and Crosskeys sell faster than new listings appear. Combined with the lowest asking prices in the dataset (£196,714) and strong five-year growth (30.5%), this turnover rate suggests a postcode where demand consistently outstrips supply. For exit strategy planning, NP11 offers the fastest path to resale.
NP18 and NP26 at the bottom of the volume table (20 and 21 sales per month) reflect their premium positioning. Higher prices naturally reduce the buyer pool. Investors in these postcodes should expect longer holding periods and less liquidity if a quick exit is needed.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: April 2026. All data is presented as provided by our sources without adjustments or amendments.
Newport Rental Market Analysis
For investors weighing up whether rental property is a worthwhile investment in Newport, the data below breaks down average monthly rents and gross rental yields across the city's postcodes.
Rental data is available for 5 of 7 postcodes. NP26 (Caldicot, Magor) and NP44 (Cwmbran) have insufficient current listings for reliable figures. For the five with data, monthly rents range from £829 in NP11 to £1,185 in NP10 and gross yields range from 3.7% to 5.5%. If you are looking to find buy-to-let property for sale in South Wales, Newport's combination of affordable entry prices and M4 corridor demand makes it a location worth examining alongside Cardiff and Swansea.
Average Rent & Gross Rental Yields in Newport
NP19 delivers Newport's highest gross yield at 5.5%, where monthly rents of £1,041 meet asking prices of £227,634. Gross rental yield is calculated from asking price and average monthly rent. It does not account for void periods, maintenance, management fees, or mortgage costs. It is a starting point for comparison, not a profit forecast.
At the other end, NP18 Caerleon at 3.7% reflects higher asking prices absorbing strong absolute rents. The yield spread across Newport's five postcodes with data is 1.8 percentage points. That gap means the difference between a property that generates meaningful cash flow and one that relies on capital growth to justify the investment.
| Area | Average Monthly Rent | Average Asking Price | Gross Yield |
|---|---|---|---|
| NP19 (St Julians, Ringland) | £1,041 | £227,634 | 5.5% |
| NP20 (City Centre, Malpas) | £968 | £225,413 | 5.2% |
| NP11 (Risca, Crosskeys) | £829 | £196,714 | 5.1% |
| NP10 (Rogerstone, Bassaleg) | £1,185 | £291,384 | 4.9% |
| NP18 (Caerleon, Langstone) | £1,164 | £377,475 | 3.7% |
| NP26 (Caldicot, Magor) | Not enough data | £357,086 | Not enough data |
| NP44 (Cwmbran) | Not enough data | £231,701 | Not enough data |
Three postcodes sit above 5% gross yield: NP19, NP20, and NP11. Each taps into a different tenant pool. NP19 draws a mix of working families and younger professionals in the eastern residential belt. NP20 attracts city centre tenants including public sector workers commuting to the ONS and IPO offices. NP11 draws tenants seeking affordable housing in the valleys corridor with access to Newport and Cardiff. That diversity of demand is a structural strength.
NP10 commands Newport's highest absolute rent at £1,185 per month but yields 4.9%. The Rogerstone and Bassaleg area attracts families and professional tenants willing to pay more for newer housing stock, particularly around the Glan Llyn development. Asking prices of £291,384 compress the yield below the 5% threshold despite strong rental income.
NP18 at 3.7% is Newport's lowest yield, driven by asking prices of £377,475. Caerleon is a historic Roman town with established residential character. Rents of £1,164 are strong in absolute terms, nearly matching NP10. But the premium asking prices make this postcode a capital growth play rather than a cash flow generator.
Is Newport Rent High?
Across Newport's five postcodes with rental data, rent ranges from 27.2% to 38.9% of the local median gross monthly salary. The general benchmark is that rent becomes stretched above 30% of gross income. Four of five postcodes sit above that level. For landlords, areas where rent consumes a lower share of income tend to produce more reliable tenants and fewer arrears.
The median gross weekly salary in Newport is £702.60, which equates to £3,045 per month or £36,533 per year. This is marginally above the Wales median of £699.10 per week and below the Great Britain median of £752.40 per week. Data from the Nomis Labour Market Profile (ASHE 2025).
| Rank | Area | Rent as % of Income |
|---|---|---|
| 1 | NP10 (Rogerstone, Bassaleg) | 38.9% |
| 2 | NP18 (Caerleon, Langstone) | 38.2% |
| 3 | NP19 (St Julians, Ringland) | 34.2% |
| 4 | NP20 (City Centre, Malpas) | 31.8% |
| 5 | NP11 (Risca, Crosskeys) | 27.2% |
| — | NP26 (Caldicot, Magor) | Not enough data |
| — | NP44 (Cwmbran) | Not enough data |
NP10 and NP18 at 38.9% and 38.2% look stretched on paper. But these are higher-rent areas attracting tenants who earn above the Newport median. Semiconductor industry professionals in NP10 and established families in NP18 are not on £36,533. The median salary is a city-wide figure that understates what tenants in these postcodes actually earn.
NP11 at 27.2% is the most affordable postcode for tenants. Rents of £829 against the Newport median income sit well below the 30% benchmark. For investors, that affordability reduces arrears risk. NP19 at 34.2% sits in the range where rents are high enough to deliver the strongest yield in Newport (5.5%) but not so stretched that tenant sustainability becomes a concern.
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View Property DealsAre Newport House Prices High? Price-to-Earnings Ratios
Purchasing a property in Newport requires between 5.4 and 10.3 times the local median annual salary of £36,533 (Nomis Labour Market Profile). The price-to-earnings ratio compares a postcode's average asking price to local wages. Lower ratios mean more affordable entry. The national benchmark is 7.5x, calculated from England's £291,865 average sold price against Great Britain's £39,125 median salary.
Four of Newport's seven postcodes sit below the national benchmark of 7.5x. NP11, NP20, NP19, and NP44 all come in at 6.3x or below. That affordability relative to local wages is a structural advantage for buy-to-let investors, as it keeps both entry costs and tenant demand in balance.
| Rank | Area | Price-to-Earnings Ratio |
|---|---|---|
| 1 | NP11 (Risca, Crosskeys) | 5.4x |
| 2 | NP20 (City Centre, Malpas) | 6.2x |
| 3 | NP19 (St Julians, Ringland) | 6.2x |
| 4 | NP44 (Cwmbran) | 6.3x |
| 5 | NP10 (Rogerstone, Bassaleg) | 8.0x |
| 6 | NP26 (Caldicot, Magor) | 9.8x |
| 7 | NP18 (Caerleon, Langstone) | 10.3x |
NP11 at 5.4x is the most affordable entry in the table. A price-to-earnings ratio well below the national benchmark, combined with a gross yield of 5.1% and five-year growth of 30.5%, makes NP11 a postcode where the numbers align across multiple measures. NP20 and NP19 at 6.2x both sit comfortably below the national figure and deliver yields above 5%.
NP18 at 10.3x is the most stretched postcode. Caerleon's premium pricing is driven by owner-occupier demand from buyers who may commute to Cardiff or Bristol, not by what Newport workers earn. NP26 at 9.8x is similar. These outer postcodes attract a different buyer profile, and the median salary understates their tenant base's actual earning power.
For investors comparing across South Wales, Newport's price-to-earnings ratios at the affordable end (5.4x to 6.3x) are competitive with most Welsh cities and significantly more favourable than Bristol, where higher prices and similar regional salaries push ratios higher.
Deposit Requirements in Newport
Newport's 30% deposit requirements range from £59,014 in NP11 to £113,243 in NP18. Three postcodes require deposits under £70,000, putting buy-to-let within reach for investors who might be priced out of Bristol, Cardiff, or the M4 corridor east of the Severn. The table uses the standard 30% buy-to-let deposit, which unlocks better interest rates and a wider range of mortgage products. In a yield-driven market, securing a competitive rate matters for cash flow.
| Rank | Area | 30% Deposit Required |
|---|---|---|
| 1 | NP11 (Risca, Crosskeys) | £59,014 |
| 2 | NP20 (City Centre, Malpas) | £67,624 |
| 3 | NP19 (St Julians, Ringland) | £68,290 |
| 4 | NP44 (Cwmbran) | £69,510 |
| 5 | NP10 (Rogerstone, Bassaleg) | £87,415 |
| 6 | NP26 (Caldicot, Magor) | £107,126 |
| 7 | NP18 (Caerleon, Langstone) | £113,243 |
NP19 at £68,290 combines an accessible deposit with the highest yield (5.5%) and the strongest five-year growth (30.6%). It requires a similar deposit to NP20 and NP44 but outperforms both on yield and growth. The extra £9,276 over NP11's deposit buys access to a postcode with higher rents (£1,041 vs £829) and the deepest buyer pool in Newport (49 sales per month).
A clear gap separates the sub-£70,000 tier from the rest. NP10 at £87,415 is the next step up, then NP26 and NP18 above £107,000. For investors with limited capital, the four most affordable postcodes all deliver five-year growth above 11%, and three of them yield above 5%. Stretching into the higher deposit brackets does not guarantee better returns in Newport. Investors exploring lower-deposit options can read about no-deposit investment property strategies.
Deposit is only part of the upfront cost. Wales uses Land Transaction Tax (LTT) rather than Stamp Duty Land Tax. Use our Welsh stamp duty calculator for an accurate LTT figure. For a full breakdown of all costs, see our guide to buy-to-let costs.
What the Newport Data Tells Buy-to-Let Investors
The postcode-level data across this guide points to three distinct tiers depending on whether you are optimising for income, growth, or both.
For yield, the numbers point to NP19 (5.5%), NP20 (5.2%), and NP11 (5.1%). All three sit below 6.2x price-to-earnings with 30% deposits between £59,014 and £68,290. NP19 stands out across multiple measures: highest yield, highest five-year growth (30.6%), and the deepest buyer pool at 49 sales per month. NP11 offers the lowest entry point in the dataset at £59,014 deposit. For those looking at investment properties in South Wales, these three postcodes deliver the strongest combination of numbers.
For growth, the same postcodes lead. NP19 (30.6%), NP11 (30.5%), and NP10 (25.1%) delivered the strongest five-year appreciation. That convergence of yield and growth in the same postcodes is a pattern. The affordable end of Newport's market has been where both rental returns and capital appreciation concentrated over the last five years.
NP26 and NP44 sit in a different category. NP26 has no rental data and negative three-year growth (-7.2%). NP44 has no rental data and modest five-year growth (16.9%). Without yield figures, the buy-to-let case for these postcodes rests entirely on capital growth expectations.
NP18 at 3.7% yield and £113,243 deposit is a premium play. Returns come from tenant quality and long-term appreciation rather than cash flow. Investors looking at off-market property may find opportunities across all tiers where motivated sellers offer discounts to asking prices.
How Newport Buy-to-Let Compares to Nearby Areas
Investors looking at Newport are typically also considering other cities along the M4 corridor and in South Wales. The table below compares Newport against four nearby locations using the same methodology: mean asking price across all postcodes, mean monthly rent across postcodes with data, and top single-postcode gross yield.
| Location | Mean Asking Price | Mean Monthly Rent | Top Gross Yield |
|---|---|---|---|
| Newport | £272,487 | £1,037 | 5.5% |
| Cardiff | £308,726 | £1,223 | 7.3% |
| Swansea | £250,854 | £1,233 | 8.8% |
| Bristol | £372,904 | £1,777 | 8.2% |
| Gloucester | £293,930 | £1,215 | 6.3% |
Newport's top yield of 5.5% is the lowest in this comparison group. Cardiff (7.3%), Swansea (8.8%), and Bristol (8.2%) all deliver higher headline yields. Those higher figures typically come from specific high-yield postcodes with student or HMO-heavy stock. Newport's yield profile is flatter, with its top postcode (NP19) only 1.8 percentage points above its lowest (NP18). For investors prioritising yield, the data points to Cardiff or Swansea within Wales.
Swansea is the only city with a lower mean asking price than Newport (£250,854 vs £272,487), and it delivers significantly higher top yields (8.8%). Swansea's university-driven rental market generates the highest headline yield in the group. Gloucester sits closest to Newport on price (£293,930) and yield (6.3%), making it the nearest English equivalent for investors weighing both sides of the Severn.
Bristol at £372,904 is the most expensive entry point with correspondingly higher absolute rents (£1,777). A 30% deposit in Bristol's average postcode requires £112,000, nearly double Newport's entry-level postcodes. For investors comparing all buy-to-let locations across the UK, Newport's position in this table reflects a market where affordability is the primary draw rather than yield.
Frequently Asked Questions
What are the highest-yielding areas in Newport for buy-to-let?
NP19 (St Julians, Ringland) at 5.5% gross yield is Newport's highest-yielding postcode. Monthly rents of £1,041 meet asking prices of £227,634. NP20 (City Centre, Malpas) follows at 5.2% and NP11 (Risca, Crosskeys) at 5.1%. All three sit below 6.2x price-to-earnings and require 30% deposits between £59,014 and £68,290. Rental data is available for 5 of 7 postcodes; NP26 and NP44 have insufficient listings for yield calculations.
How does Newport compare to Cardiff for buy-to-let?
Newport is cheaper to enter (mean asking price £272,487 vs Cardiff's £308,726) but delivers a lower top yield (5.5% vs 7.3%). Cardiff commands higher absolute rents (£1,223 vs £1,037 mean) and has a larger student population driving high-yield postcodes. Newport's M4 corridor access comes at a lower capital outlay. Cardiff offers a deeper rental market with more diverse tenant demand. Both sit within 12 miles of each other, and some investors hold properties in both cities.
What tax do I pay when buying property in Newport?
Land Transaction Tax (LTT), not Stamp Duty. Wales has its own property transaction tax with different rates and thresholds from the English SDLT system. Buy-to-let investors pay additional dwelling rates on top of the standard LTT bands. Use our Welsh stamp duty calculator for an accurate LTT figure based on your purchase price. Budget for legal fees, survey costs, and any refurbishment on top of the deposit and tax bill.
Is Newport's population growing?
Newport grew 9.5% between the 2011 and 2021 censuses, the highest rate of any local authority in Wales. The population increased from 145,736 to 159,592, adding 13,856 residents. That growth rate exceeds Cardiff's and is driven by Newport's affordability relative to neighbouring cities, M4 corridor employment access, and new housing delivery at sites like Glan Llyn. Population growth of that scale supports long-term rental demand. Source: ONS Census 2021.
Can I find buy-to-let property in Newport under £200,000?
NP11 (Risca, Crosskeys) averages £196,714, just under the £200,000 mark. Individual terraced houses and flats in NP19 and NP20 also list below that level. Newport's average terraced price from the Land Registry is £186,741 and flats average £116,585. At a £150,000 purchase price, a 30% deposit is £45,000. If you are starting a property business, Newport's sub-£200,000 market offers some of the lowest entry points on the M4 corridor. Repossessed properties can offer further discounts below these averages.