Work has begun on a 43-home affordable housing scheme in Newport, transforming a long-underused industrial site in the Allt-yr-yn area into a residential development that will help meet growing demand for low-cost homes in the expanding city.
The Factory Road development, delivered by housing association Hedyn in partnership with Castell Group, has secured a Welsh Government social housing grant and is part of the ongoing regeneration of Newport. Peter Crockett, group executive director of Growth at Hedyn, said housing associations play a critical role in tackling the housing crisis, adding: “That starts with working in partnership to unlock sites that deliver real benefits for communities. 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.”
He stressed that every home built supports better health, stronger communities and greater opportunity. Councillor Matthew Evans, whose comments were reported in the announcement, 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, and making a real difference to people’s lives.”
The scheme is one of several projects across Wales illustrating how housing associations are using public investment and partnerships to repurpose brownfield land and ease the affordable housing shortage. In Powys, housing association Barcud has completed a £2.5 million development of 10 energy-efficient new homes in the centre of Llanidloes, on the site of the former Sandringham Leather Goods factory on Eastgate Street. Known as Cae’r Hen Ysgol, it provides a mix of six one-bedroom and four two-bedroom houses, all built to modern timber-frame construction standards with solar photovoltaic panels and battery storage, achieving an EPC rating of A.
Barcud worked with Llanidloes-based contractor JJP Services and received £1.7 million in Welsh Government social housing grant funding. Jason Jones, chief executive of Barcud Group, said the association is focused on developing mixed-tenure affordable homes for rent, investing in communities where affordable housing is most needed, and ensuring homes meet the highest standards of quality and energy efficiency. He added: “This development in Llanidloes is yet another prime example of how committed we are to working with, and supporting local supply chain businesses, in providing exciting opportunities for locals who are keen to continue living locally in Powys.”
Hedyn: a new force in Welsh social housing
The Newport project is among the first major developments from Hedyn, a housing association formed on 1 April 2025 through the merger of Melin Homes and Newport City Homes. The merger was designed to increase scale and capacity, build financial resilience, and combine expertise with local knowledge to deliver better services and create “connected communities where everyone can live well”. The name Hedyn is Welsh for “seed”, symbolising growth and new beginnings.
With over 15,000 properties across five local authority areas — Blaenau Gwent, Monmouthshire, Newport, Powys and Torfaen — Hedyn is now the second-largest housing association in Wales. Paula Kennedy, formerly chief executive of Melin Homes, leads the organisation as chief executive, while Peter Crockett serves as group executive director of Growth. In the 2023‑24 financial year, Newport City Homes reported a surplus after tax of £8.9 million and Melin Homes generated a surplus of £10.4 million, and in July 2025 Hedyn received “green” ratings from the Welsh social housing regulator for both governance and tenant services and financial viability.
The scale and financial strength of large associations like Hedyn are central to how the sector addresses the housing crisis. Associations use Welsh Government social housing grants — the main capital programme supporting affordable housing delivery by registered social landlords in Wales — to unlock sites that might otherwise remain undeveloped. Schemes must align with local authority housing priorities and comply with design, energy and maintenance standards, including the Welsh Housing Quality Standards 2023. The Welsh Government also supports development through the Registered Social Landlords Development Loan Scheme, which provides low-interest loans for affordable, energy-efficient homes; £36 million was committed to the scheme for 2025‑26.
The need for such investment is acute. Research indicates that Wales requires approximately 9,400 homes to address existing unmet need, with between 7,800 and 9,300 additional homes needed each year. While recent figures show a slight decrease in overall homelessness, the number of people living in temporary accommodation remains the third highest on record. In 2023‑24, social landlords in Wales completed just 12,887 new lettings — the lowest annual total for 20 years — even as the number of households rehoused due to homelessness reached a record high.
By converting underused industrial land into modern, energy-efficient homes, developments such as Factory Road and Cae’r Hen Ysgol demonstrate how housing associations are helping to regenerate communities while addressing a pressing shortage of affordable, high-quality housing. The Factory Road scheme, delivered in partnership with Castell Group, is expected to contribute directly to Newport’s regeneration, bringing a derelict site back into productive use and creating safe, sustainable homes for current and future residents.
