Octane Capital has assessed the UK mortgage broker market’s annual revenue since 2013 to see how it has performed over the last decade, and what that might mean for the immediate future of UK brokers
The UK’s mortgage brokerage market is estimated to grow this year in spite of ongoing economic insecurity, as per new analysis by Octane Capital.
The lender has evaluated the UK mortgage broker market’s annual revenue since 2013 to determine how it has performed over the last decade, and what that might mean for the immediate future of UK brokers.
The figures show that since 2013, the UK mortgage broker market’s revenue has grown every single year, each passing year bringing a new benchmark.
2014 saw the largest increase in revenue and, thus, market size, increasing 29.5 per cent. The same year saw the number of businesses operating in space rise by 24.4 per cent.
2016 brought another revenue increase (19.1 per cent) and from there have been sustained yearly increases all the way through to 2022 when revenue climbed by 9.6 per cent to hit a decade-high of £1.88 billion.
2022 also saw a peak in the number of market operators, increasing 9.1 per cent to reach 5,484.
In spite of the present economic and market conditions, predictions for 2023 show the sector growing even further. It is projected that, by the end of year, revenue will have risen by 2.6 per cent to reach a new peak of £1.93 billion.
The number of businesses is also expected to increase again, this time by 0.2 per cent to reach a new peak of 5,615.
Chief Executive Officer of Octane Capital, Jonathan Samuels, said that it is remarkable how strong the UK housing market is. If you look back over decades of historical data, the market has only suffered truly weak moments on one or two occasions.
The same can plausibly be said for the mortgage broker market and even in this present period of economic strife and uncertainty, we see once again how the mortgage industry is standing firm, he said.
He said that even in difficult times, homeownership is one of the driving aspirations of the nation and it is the army of mortgage brokers who play a vital role in helping realise this aspiration. While this remains the case, the sector will continue to thrive, despite what is thrown at it.