Many people believe that the Underwood Estate was created for the local steelworks at Llanwern, as it was constructed at the same time as the Richard Thomas and Baldwins "Spencer Works" was being built. This has some truth, as originally people moved into the huts after the war. However the local council at the time, Magor and St Mellons Rural District Council, created the housing estate with post-war initiatives for more housing, hence why the second phase of the housing development consists of rapid construction poured concrete houses which are very sturdy in construction and much stronger than traditional bricks-and-mortar houses.