The removal of tolls on the Severn bridge has opened up a new property investment hotspot as commuter prices plummet.
Property across the Welsh border is becoming increasingly attractive to investors, particularly those from Bristol, as commuting costs are set to drop by as much as £1400 per year. The changes from dropping the Severn Bridge tolls should boost the Welsh economy by a staggering £100 million annually, with locations such as Newport, Chepstow and Cardiff growing in popularity.
Many buyers have flocked to South Wales as Bristol’s prices have seen rapid growth. In Bristol, the average house price stands at £294,303, in stark comparison to just £128,764 in Newport. Now that buyers are no longer hit with toll costs as part of their commute, many more are considering crossing the border.
Recently a plot of land in Newport sold for £122,000, three times more than its guide price of £36,000. This could mark the first price spike in the area due to its easy commute to Bristol.
Paul Fosh, of Newport-based Paul Fosh Auctions, said: ‘The price achieved for this simple plot of land in Beechwood is amazing. There isn’t a building on the land or even planning permission. The plot was certainly a star attraction of the auction with bidders neck and neck in their efforts to secure the lot. At times I wondered where the bidding was going to end. There is no doubt that the city of Newport has become increasingly desirable over recent months and this is down to a number of factors.’
He explained: ‘One of the key ones is the imminent removal of the tolls charged on the Severn Bridges. This makes buying property here even more attractive to those from the Bristol area looking at property. We are increasingly getting calls from people from across the Severn Bridge and also them attending our regular auctions in Cardiff who are looking at the bargains that can be had on this side of the border.’
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