With the property market now showing early signs of a return to health, 2024 will bring yet another year of positive growth for the mortgage broker industry.
This is according to the latest research by specialist property lender Octane Capital which shows that the UK’s mortgage broker industry has grown by 110% in the last decade, and is forecast to grow by another 32% by 2030, reaching a total market size of over £2.5bn.
Octane Capital analysed UK mortgage broker market size based on annual revenues since 2013, looking at how the sector has performed over the last decade, and what this performance might mean for the immediate and mid-term future of UK brokers.
The data shows that despite the challenges faced by the industry over the last year, 2023 was a year of positive growth, with annual revenues climbing by 2.6% and driving the market size of the UK mortgage broker market to £1.926bn – the highest level seen since 2013.
In fact, since 2013 the UK’s mortgage broker market has, without fail, increased in size every year.
This means that over the past ten years, the size of the UK mortgage broker market has increased by 110%.
So, after recording good growth in 2023 despite significant economic headwinds fighting against the property and mortgage industries, Octane Capital forecast how the market is expected to perform over the coming years.
As we move further into 2024, homebuyer activity is fully expected to increase which means the mortgage broker industry will also grow. Octane Capital anticipates this will result in a revenue increase of 4.7% for the year which would be the second-largest annual increase since 2017.
Octane Capital chief executive Jonathan Samuels commented: “The mortgage sector faced some significant headwinds in 2023, as higher mortgage rates and the ongoing high cost of living caused buyer appetites to reduce. But despite this, the mortgage broker market continued to demonstrate its resilience, with another year of positive growth. “
He added: “With the property market now showing early signs of a return to health, we anticipate that 2024 will bring yet another year of positive growth for the sector and this growth is forecast to continue through to 2030.”
