Reading recently released figures that Wales has the most improved property market in the UK is heartening news but it didn’t come as a surprise. As the regional BDM for South Wales and the Southwest for Shawbrook’s commercial mortgages division, a large proportion of my time is spent in the country. The fact that the average time on the market for Welsh properties has dropped by 37 days since mid-May, coupled with figures from Halifax reporting that mortgage affordability has improved throughout the UK (excluding the Southeast), means at the moment South Wales is an ideal place for clients to invest.
As Cardiff is the capital, it naturally attracts business and therefore investors from outside the local area. Personally, I think that Cardiff city centre is perhaps more vibrant than neighbouring Bristol’s. It has a good financial background with a varied broker landscape consisting of both established large firms and sole traders. People gravitating towards Cardiff make it a great place in which to generate leads and we’re welcoming new brokers and clients. For example, our work with Intelligent Loans, a Cardiff-based packager, has increased as they attract more enquiries from the broker community in South Wales.
Cardiff is also where a high proportion of experienced property investors tend to look. The university means there is a large volume of student accommodation and Houses of Multiple Occupancy (HMOs). It is seeing significant development, particularly around the bay area, and is an attractive proposition for landlords with large portfolios. Although Cardiff is the hot spot, opportunities are opening out and investors are looking across the whole of South Wales.
Currently in South Wales, we find our buy-to-let (BTL) and short- or medium-term loans for property refurbishment are the most popular among property investors. Cardiff has plenty of fairly large office structures which lend themselves particularly well to being converted from commercial to residential premises, as well as large houses suitable for refurbishment as HMOs for student lets. This trend has been apparent for some time now, with the refurbishment loans being used for everything from a light refurb to heavier structural changes.
However, it isn’t only property investment activity prevalent within the region; Shawbrook’s panel of brokers also work on mortgages for trading businesses. We regularly work with SMEs throughout the region, as well as companies looking to finance new or existing premises – the commercial mortgage scene is very diverse.
It’s really exciting that Shawbrook is seeing an increase in new clients and brokers as we thrive on developing new relationships as well as maintaining existing ones. Confidence around investing in the property market remains high and South Wales’ combination of an improved property market, increased mortgage affordability and investors seeking the full range of commercial mortgage products makes it a hotbed of opportunity for brokers.
