The UK’s mortgage broker market is estimated to jump 12% hitting almost £2bn, by 2025, despite forecasts of a slowing housing market, says Octane Capital.
The study by the specialist lender points out that the market has grown strongly, recently aided by the pandemic, to make up 5,580 mortgage broker businesses. These firms generate a total market value of £1.78bn, netting each business an average annual revenue of £318,584.
It says: “These numbers are the highest they have been in at least a decade.”
Over the past ten years, the number of businesses has increased by 24%, while total market value has doubled, the report adds. The average revenue per business has lifted by 62%.
The study says: “After years of steady growth, the pandemic helped to supercharge the brokerage industry. Since the start of the pandemic, the number of active businesses has increased by 9%, market value is up 13.2%, and revenue per business has grown by 4%.”
It adds that the sector’s “strong historic performance is indicative of a housing market that has proven to be resilient when broader economic issues have caused other industries to struggle and has set the groundwork for yet more growth over the next three years”.
The study says that by 2025, the total number of brokerage businesses in the UK will lift a further 4%, pushing the total value of the market up by an estimated 11.9% reaching close to £2bn in value. The average revenue of the individual mortgage broker is also forecast to rise by 7.6%.
Octane Capital chief executive Jonathan Samuels says: “The mortgage sector is the backbone of the UK housing market and so it’s hardly surprising that we’ve seen such phenomenal growth, not just during the pandemic property market boom, but for a sustained period of time.
“Of course, the current outlook for the market is far from that of recent years and we expect some turbulent times ahead.
“However, we’ve also seen how the property market has defied wider economic turmoil time and time again and even in the current landscape, we expect the mortgage sector to post further positive growth over the coming years.”
