Almost two-thirds of brokers expect adviser numbers to fall next year as those leaving the sector are not replaced, a new survey suggests.

The poll of 350 appointed representatives of Primis network carried out in March found that while 62% thought broker numbers would shrink, 37% a were more positive, believing numbers would increase.

Advisers based in the north of England were marginally less optimistic about the size of the intermediary sector next year than those in the south.

Primis sales director Claire Madge says the regional variation was likely a reflection of demand and typical wealth in different areas.

She says: “Our advisers report a really varied picture.

“In some parts of the country, customers are much more exposed to affordability constraints.

“In others, purchase and remortgage values are higher and income, therefore, more lucrative.

“Each firm has its own focus and business model to suit the customers they cater to and that means they experience different parts of the market – from high value loans and fewer transactions all the way through to writing more business at a lower margin.

“There is no doubt that it’s been a tough couple of years for borrowers and that has affected brokers.”

But she says that brokers are more concerned about maximising their own efficiency and profit margins than whether the sector as a whole is shrinking.