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Start-ups signal growth in a flat market

by: Alex Hammond
  • 22/01/2015
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Start-ups signal growth in a flat market
General consensus among industry commentators is that 2015 will offer little in the way of growth when it comes to gross lending levels.

So if you are expecting to grow your business this year, you are either going to have to work even harder to win market share from your competitors, or align your business with those sectors that do look to offer growth.

One area that Kensington has been very vocal in promoting as a growth sector is the self employed market. Last year saw self-employment reach its highest level since records began, with 15% of the working population working for themselves, according to the Office of National Statistics.

Perhaps what is more interesting for mortgage brokers, however, is a set of statistics released earlier this month by a think tank called Centre for Entrepreneurs.

These statistics showed the number of company registrations at Companies House and confirm that 2014 for a bumper year for new business start-ups.

A record breaking 581,173 businesses were registered with Companies House last year, up from 526,447 in 2013 and 484,224 in 2012.

While not all company registrations will result in the launch of a new business, the figures provide a good barometer of the number of people who are setting up to work for themselves. And a record breaking year in 2014 means that there will be a significant number of people in 2015 who will have one year’s worth of accounts for their new business.

This is great news for you because any of these newly self-employed people who want to get a mortgage this year will be unable to do so from a high street lender. Indeed, lending to the self-employed based on 12 months accounts is criteria that was pioneered by Kensington and has still only been mimicked by a handful of other specialist intermediary lenders.

So it’s great opportunity for you to win new clients by offering a solution they would be unable to get by going direct to a lender.

Even better news is that the Centre for Entrepreneurs has broken down the number of company registrations into regions, and we have included these regional figures below so that you so you can get an idea of the scale of the opportunity in your area.

So if you looking for a growth sector in a flat market, look to the record number of start-ups and a lender that can help you find a home for their mortgage.

Alex Hammond is head of marketing communications at Kensington

City Start-up Numbers

Greater London 184,671
Birmingham 18,337
Manchester 13,054
Brighton 8,344
Glasgow 8,173
Bristol 8,130
Sheffield 8,052
Nottingham 7,641
Warrington 7,529
Edinburgh 7,480
Coventry 7,059
Leeds 6,778
Leicester 6,763
Reading 6,759
Belfast 6,369
Cardiff 6,327
Guildford 6,146
Liverpool 6,032
Portsmouth 5,988
Chelmsford 5,878
Newcastle-Upon-Tyne 5,840
Northampton 5,813
Stockport 5,503

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