Even the most optimistic among us will be hard pushed to deny that the next couple of years could be very challenging for the industry.

Despite the Bank of England’s various efforts to stave off a recession, we’re hearing predictions of interest rates surpassing 3% by the end of the year and inflation continuing to outpace forecasts well into 2023.

Add a cost-of-living crisis and it’s bound to test consumer confidence.

The aim is to offer bespoke reviews with all our brokers

All that is on top of the challenges brokers face on the ground with a lack of stock, products changing daily, lenders clamping down on affordability and completions taking far longer than normal.

In fact, data from Propertymark reveals 41% of its members are seeing transactions take 17 weeks or more to complete. Speaking to some of the brokers in our national network, we’re hearing lead times as long as 22 weeks.

That’s just two and a half completion cycles a year in an industry that has previously enjoyed four. All things considered, it doesn’t take an economist to realise tough times could be ahead with volumes reduced and earnings potentially impacted.

Adaptability

Although the mortgage industry has proved very resilient in turbulent times, the challenges ahead require more than a head-down approach. If anything, it’s an important reminder to be proactive and adaptable, and to diversify.

That’s the key message of our new business development package, which offers free support and guidance to our employed and self-employed brokers to help them get ahead of this situation and explore new opportunities.

It’s always important for businesses to dedicate time for essential forward planning, no matter the environment

Rather than broad strokes, the aim is to offer bespoke reviews with all our brokers to not only analyse their current business but look at their future planning and evaluate any potential areas for growth.

The reason many brokers have not looked at diversifying their offering is simply the vibrant nature of the property market over the past few years, which removed the urgency to expand their business beyond core areas.

For some brokers, the solution to an income gap may be finally capitalising on the buoyant protection market. If there’s one thing consumers have learned from the past couple of years, it’s the value of protection, whether concert tickets and foreign holidays or larger commitments such as life insurance and mortgage protection.

The challenges ahead require more than a head-down approach. It’s an important reminder to be proactive and adaptable, and to diversify

For other brokers who focus only on residential mortgages, it may be expanding their offering slightly to include secured loans or more broadly with commercial loans.

Both offer valuable opportunities to not only gain a competitive advantage but boost potential earnings.

Stumbling block

In all cases, the biggest stumbling block can be a lack of confidence or limited knowledge in new areas, as well as the thought of compliance headaches.

That’s where support packages such as our business development initiative will come into play, helping brokers access tools, strategies and learning to really maximise these new opportunities. In addition, we’ll provide a range of marketing material and collateral to target these areas and attract new business enquiries.

Volumes may be reduced and earnings impacted

Potential doom and gloom aside, it’s always important for businesses to dedicate time for essential forward planning, no matter the environment. We are all guilty of being blinkered in manic day-to-day operations. Our hope with this initiative is we can encourage brokers to invest in their business and secure their future by putting meaningful plans in place.

It’s our duty to play our part, providing the necessary support and framework to help our partners thrive, whatever the market conditions.

John Phillips is national operations director at Just Mortgages