A drop in adviser numbers should be a wake-up call, not a white flag – Wilson

That’s not just a blip; it’s the largest year-on-year fall in over a decade. And while the natural reaction might be to sound the alarm, it’s worth asking a more constructive question: what’s driving this trend, and what can we do about it?

Clearly, the market backdrop hasn’t helped.

Over that period and prior, with the post-pandemic fall and rise, advisers had to navigate significant volatility – surging interest rates, a cooling housing market, affordability pressures on borrowers, and a fall in transaction volumes.

For some, smaller firms or one-person directly authorised (DA) operations, especially, that might have meant prolonged income pressure. When you’re a DA sole trader or a smaller practice, you absorb the full weight of that disruption.

Add in growing compliance demands, uncertainty about future regulation, and tighter margins, and you can understand why some advisers may have decided that was the time to step away.

But it’s not just economic. Some of this drop may be linked to demographics. For years, we’ve known that the average age of advisers – particularly their IFA counterparts – skews older, and the profession remains male-dominated.

Ageing out of the profession

Many advisers who’ve worked in the industry for decades may be approaching retirement, and without a clear exit plan or successor in place, the natural conclusion is to wind down.

The problem is that without a structured handover, those client banks often disappear too.

That’s something we’ve actively tried to address at The Right Mortgage (TRM). We’ve seen strong adviser engagement across our network and our adviser/member firm numbers have improved.

Part of the reason is the support we provide in helping member firms ride out market cycles, but it’s also down to offering something most one-man bands simply can’t access alone: a clear career and business lifecycle, from entry to exit.

Our Right Retirement Plan is a great example of this. Open to all advisers, not just TRM members, the plan offers a structured, supported pathway for those looking to semi- or fully-retire or leave the industry, helping them realise the value of the businesses and client relationships they’ve built, while ensuring clients continue to receive high-quality advice.

We’ve seen growing interest in this over the past year as more advisers look for a structured, professional exit that – importantly – doesn’t leave their clients in the lurch.

But this isn’t just about endings, it’s also about beginnings. Because if there’s one clear message from this data, it’s that the profession needs to continuously focus on bringing in new blood.

That means a concerted effort from networks, firms, trade bodies and the wider industry to better promote mortgage advice as a career of choice. The job of an adviser today is not only rewarding – financially and personally – but also essential.

Demand for advice is rising

Despite the rise of artificial intelligence (AI) and automation, we’re not seeing a fall in demand for advice. Quite the opposite. Consumers are grappling with more complex decisions, more choice, and more risk.

They need expert, regulated, human guidance more than ever.

That means we need more advisers, not fewer. And for that to happen, we must give them the structure, support, and opportunities to thrive. That’s where networks can make a tangible difference – smoothing out the peaks and troughs, easing the compliance burden, and opening up access to new revenue opportunities and recruitment support.

This can look like mentoring, training, and onboarding programmes that help new entrants – whether graduates, career switchers or paraplanners – transition into advice and build sustainable, long-term careers.

An ongoing drop in adviser numbers shouldn’t be accepted as inevitable. It should, however, be a wake-up call for the industry to take a long-term view, to support those thinking of leaving, and to inspire those thinking of joining.

Advice remains vital. The demand is there. The challenge now is making sure the profession is ready to meet it.