Market expanded rapidly last year
The mortgage broker market grew by 9.6% annually despite a turbulent last quarter in 2022, the latest research by Octane Capital has revealed.
The specialist property lender analysed the size of the UK mortgage broker market based on revenue and how the sector has performed over the last decade, as well as forecasting where it might sit by the end of the year.
The analysis showed that the mortgage broker sector has increased in size every year since 2013 even with what Octane Capital called “external market factors dampening the wider property market in recent years.”
The market size of the sector was estimated to have reached £1.88 billion in 2022, increasing in size by 104.5% in the last decade.
The sharp rate of annual growth, the research showed, was also the third largest year-on-year increase seen over the last decade, with the exception of 2014 and 2016, when the market increased by 29.5% and 19.1% respectively.
Despite the mortgage market turbulence brought by last September’s mini budget and the cooler market conditions that have materialised in 2023, Octane Capital forecast that the size of the sector will increase further this year, hitting £1.93 billion in 2023, or a further 2.6% increase compared to 2022.
“The property market has had to deal with a range of challenges in recent times, from a prolonged period of political uncertainty due to Brexit, the obvious obstacles posed by the pandemic and, more recently, the uncertainty spurred by high inflation, increasing interest rates, and a shambolic mini budget last September,” Jonathan Samuels (pictured), chief executive at Octane Capital, commented.
“Despite this, the market has stood firm and our aspirations of homeownership have not been dampened. Of course, an unwavering level of market activity requires a suitably adequate mortgage sector to help facilitate the nation’s aspirations of homeownership. So, it’s hardly surprising that the mortgage broker market has increased in size quite considerably over the last decade and is expected to maintain this growth over the year ahead.”
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