Work starts on affordable homes development on former industrial site

Nation.Cymru staff

Construction has started on 43 affordable homes on a long-disused industrial site.

The development at Factory Road in Allt-yr-yn, Newport, will see the former industrial land transformed into a new residential community, with the first homes expected to be completed in spring 2028.

The scheme is being delivered by housing association Hedyn and has received Welsh Government Social Housing Grant funding.

Newport has experienced significant population growth in recent years, with the city now home to more than 150,000 people. The city has also seen a sharp increase in the number of residents aged between 25 and 34, adding further pressure to the local housing market.

Developers say the project will help meet demand for affordable housing while bringing an underused site back into productive use.

The homes will be built using modern methods of construction, including components manufactured off-site before being assembled on location. The approach is intended to reduce construction times, improve energy efficiency and minimise waste.

Hedyn said the development forms part of its wider programme to redevelop stalled or underused sites across south-east Wales.

Peter Crockett, group executive director of growth at Hedyn, said: “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.”

Newport City Council has welcomed the development.

Councillor Matthew Evans 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.”

The homes are being developed in partnership with Castell Group and will be built to modern environmental standards, with developers saying the properties are intended to help residents reduce energy costs.

The scheme follows the creation of Hedyn in 2025 through the merger of Melin Homes and Newport City Homes. The housing association now manages more than 15,000 properties across south-east Wales.