FLATS FUNDING BOOST: Welsh Government to pour millions into city centre flats plan at McDonald’s site and Kingsway block

Swansea is in line for a major regeneration boost after the Welsh Government confirmed funding for two high-profile developments right in the heart of the city.

The cash forms part of a £12.6 million Wales-wide package – but a significant chunk is heading straight to Swansea, targeting long-standing empty upper floors and underused buildings.

At the centre of the plans is 1 Oxford Street – the busy McDonald’s site opposite Castle Square, where empty floors above could finally be brought back to life.

Up to £4.9 million in grant funding alongside a £1 million loan has been earmarked to help transform the building, with proposals already in place to create new flats above the fast-food restaurant.

It’s a site we’ve previously reported on, where plans have been drawn up to tackle one of the city centre’s most prominent unused spaces and turn it into much-needed housing.

Just a short walk away, another key Kingsway building is also in line for change.

Phase two of the Potters Wheel development – covering 85–86 Kingsway at the junction with Dillwyn Street and St Helen’s Road – will receive up to £750,000 in grant funding alongside a £1 million loan.

The project builds on earlier work at the site, where apartments were created above the ground floor pub and a striking green wall installed as part of efforts to bring more nature into the city centre.

Now, housing association Beacon Cymru is set to push ahead with further apartments on the upper floors – continuing the shift towards city centre living.

The Welsh Government says the funding is about more than bricks and mortar.

Cabinet Secretary for Housing and Local Government Jayne Bryant said:

“This funding is not just about infrastructure—it is about creating real, tangible change for the people who live and work in these areas.

“By revitalising town centres, supporting local businesses, and improving public spaces, we are helping to build places where communities can thrive both socially and economically.”

She added:

“We know that strong, vibrant high streets are the backbone of wider economic growth across Wales.”

The announcement was made during a visit to the Biophilic Living project at Mowbray Yard in Swansea City Centre – a scheme already showcasing how greener design and housing can reshape urban spaces.

The latest investment is part of the Welsh Government’s Transforming Towns programme, which has already pumped nearly £500 million into regeneration projects across Wales since 2020.

But for Swansea, the focus is clear – bringing empty buildings back into use and creating more homes in the city centre.

For years, upper floors above shops and businesses have sat vacant, even as demand for housing continues to rise.

Now, with millions committed to two flagship sites, there’s fresh hope that parts of the city centre that have long been overlooked could finally see new life.

And with both developments targeting highly visible locations, the changes won’t go unnoticed.

For Swansea shoppers grabbing a meal on Oxford Street or passing through Kingsway, the skyline above them could soon look very different.

Millions pledged to revive Welsh centres — Swansea, Port Talbot, Haverfordwest, Porthcawl and Bridgend among winners

Town and city centres across Wales are in line for a major facelift after the Welsh Government unveiled a £19.6m cash package. The funding, part of the Transforming Towns and Placemaking programmes, will target empty shops, tired public spaces and stalled developments — with South West Wales councils among the biggest winners.

Swansea’s Biophilic Living gets fresh cash

Swansea Council has secured more than £559,000 for the commercial and retail elements of the flagship Biophilic Living scheme, which promises 50 affordable homes alongside shops and offices in a nature‑inspired design.

A further £1.36m is earmarked for the Mowbray Yard redevelopment, creating a new green courtyard space in the heart of the city centre.

Port Talbot facelift for Aberafan Shopping Centre

In Port Talbot, up to £840,000 will fund a redesign of the public realm outside the southern entrance of the Aberafan Shopping Centre, aiming to boost footfall and modernise the tired frontage.

Haverfordwest Wilko site transformed

Pembrokeshire County Council will receive more than £1.27m to redevelop the former Wilko store in Haverfordwest, part of the Western Quayside regeneration. A smaller grant of £100,000 will also support works at 16‑18 Bridge Street.

Porthcawl seafront gets new events space

Bridgend Council has secured £600,000 to create a new events space on the Hillsboro South site in Porthcawl, a key part of the seafront regeneration plans.

Wyndham House overhaul for Bridgend town centre

Bridgend will also benefit from £1.78m to acquire and refurbish Wyndham House, with housing association Valleys to Coast planning to transform the building into its new HQ alongside apartments and commercial units.

Welsh Government hails “heart and soul” of communities

Cabinet Secretary for Housing and Local Government Jayne Bryant said the funding would “breathe new life into our high streets, support local traders, and create the vibrant, welcoming spaces that our communities deserve.”

Related stories from Swansea Bay News

City Centre ‘Biophilic Swansea’ scheme ‘a first for the UK’
Landmark Biophilic Living project promises homes, shops and offices built around nature-inspired design.

New city centre courtyard to honour late council officer Huw Mowbray
Swansea Council begins work on Mowbray Yard, a green courtyard space due for completion in 2026.

Aberavon Shopping Centre regeneration coverage
Updates and stories on Port Talbot’s busiest retail hub, including plans for a public realm facelift.

Haverfordwest ‘Western Quayside’ project gets underway
Bold redevelopment of the former department store site aims to transform the riverside area.

Valleys to Coast unveils plans to transform Bridgend town centre building
Wyndham House set to become housing association HQ alongside apartments and commercial units.

New city centre courtyard to honour late council officer Huw Mowbray

Tribute in the heart of the city

According to the council, construction of Mowbray Yard will start this month after the appointment of Horan Construction Ltd as the main contractor. The courtyard, which the council says will feature trees, planting and new street furniture, is intended to provide a calm and welcoming space between The Kingsway and Oxford Street.

Council Leader Rob Stewart said:

“We’re delighted to confirm the appointment of a contractor to deliver Mowbray Yard – a beautiful new courtyard that will stand as a lasting tribute to Huw. His dedication, energy and vision helped shape many of Swansea’s most significant regeneration projects in recent years, so it’s only fitting that this space bears his name.”

A career that transformed Swansea

The council notes that Mr Mowbray, who died in 2023 aged 59, was a father of two and a long‑serving officer. Officials say he played a central role in delivering landmark schemes including the Swansea.com Stadium, Swansea Arena and the revamp of Wind Street.

Part of wider regeneration

Swansea Council says Mowbray Yard is due for completion in spring 2026. The courtyard will sit behind the new 71/72 Kingsway office development, which the authority describes as a key part of the city centre regeneration programme and part‑funded by the Swansea Bay City Deal.

The council says 80% of the office space at 71/72 Kingsway is now let, with hundreds of staff from companies including TUI and Futures First already moved in. Officials add that further tenants will be announced in the coming weeks.

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