From Occupancy Clause to the impact of Wrexham AFC and Gavin & Stacey, remote brokers won't understand the nuances
The Welsh mortgage market is no mirror image of England’s. While affordability may appear more favourable on paper, the reality for many Welsh buyers is shaped by lower incomes, strict local housing clauses, and a deep dependence on regional employers.
"South Wales is totally different to North Wales, so you can imagine how different then Wales is to England," said Christopher Davies, principal at First Mortgage Solutions. "House prices are definitely a lot lower here, but so are incomes. The average salary in Neath isn’t going to match what someone earns in London."
Wales' mortgage market diverges in several technical ways. Land Transaction Tax (LTT) replaces England's stamp duty, with its own set of rates and rules. Brokers unfamiliar with these nuances can easily miss critical details.
"There’s an Occupancy Clause, section 157, up in North Wales. You have to apply to the council before buying a property. There's nothing like that in England," Davies said. "These local quirks make a big difference. A buyer dealing with a remote broker may not get that insight."
In some areas, policy tools are now being used to preserve local housing stock for residents. Wrexham, for example, has seen increased demand tied to the global profile of its football club. "If you're applying to buy a house there and can't show you've lived locally, you're unlikely to succeed," said Davies. "These rules are being used to protect local access to housing."
Affordability pressures tied to employment
While house prices in Wales are lower, buyers often face tougher affordability challenges than their English counterparts. Income inequality and heavy reliance on a small number of major employers amplify those pressures.
"We probably have 30% of clients working for the same five companies," Davies said. "If one of them downsizes or relocates, that has a massive ripple effect. A few years ago, we had a couple declined for a mortgage simply because they both worked for Tata Steel, which was rumoured to be closing."
Even small economic shifts can bite deeper. "People's disposable income was already low. Add inflation and rising interest rates, and it hits hard," he said. "We’ve had clients who had to downsize. They were on 1.7% five years ago and now they’re at 5.5%. That’s a big jump."
The differences also extend to planning and development. "In England, you can turn commercial into residential without planning permission. You can’t do that in Wales," Davies said. "There are fewer redevelopment opportunities here, even as town centres struggle."
Barry, meanwhile, has seen growing tourism and short-let investment driven by the success of shows like Gavin & Stacey. While this has boosted the local economy, it has also raised questions about pricing out locals. "It’s brilliant for the area, but there is a flip side," Davies said.
Tech adoption meets rural reality
Like many firms, First Mortgage Solutions is adopting digital tools, from online portals to selfie-based ID checks. But Davies believes that regional brokers will continue to hold a vital edge.
"We’ve got quirky properties - farms, ex-council houses built from tin - and schemes like shared ownership that vary by council. You need someone who understands that," he said. "Sure, clients want digital tools. But they also want to know they can call you, text you, or pop in."
Davies sees a hybrid future where brokers balance efficiency and local expertise. "We’re trying to do both. People might see a shiny ad online and think that’s all they need. But when they hit a clause or a quirky property and the broker doesn’t know what to do, that’s when local knowledge really counts."
Hybrid service is the future, but only with local knowledge
For regional brokers in Wales, the next five years will likely test their ability to modernize while preserving the value of local insight. As regulation, technology, and buyer expectations shift, the firms that blend both worlds may be best positioned to thrive.
"The need for regional brokers isn’t going away," said Davies. "But we’ll all need to be a bit more 21st century. That’s where the real opportunity is."
