This will be a 12 per cent rise on the current market value of £1.78bn generated by 5,580 firms in the sector. On average, each company generates £318,582 in mortgage business.
According to data obtained by Octane Capital from market research company Ibisworld, the value of business seen in the sector has more than doubled in a decade, while the number of firms has increased by 24 per cent.
Since 2019, broker firm numbers have gone up by nine per cent and the value of business has risen by 14 per cent.
Octane has projected that if the number of mortgage broker businesses increase by four per cent to 5,805 by 2025 as predicted, the value of the sector will rise by a further 11.9 per cent to £1.98bn. This will give each mortgage broker a 7.6 per cent increase in revenue.
‘Backbone of the UK housing market’
Jonathan Samuels, CEO of Octane Capital, said: “The mortgage sector is the backbone of the UK housing market and so it’s hardly surprising that we’ve seen such phenomenal growth, not just during the pandemic property market boom, but for a sustained period of time.
“Of course, the current outlook for the market is far from that of recent years and we expect some turbulent times ahead.
“However, we’ve also seen how the property market has defied wider economic turmoil time and time again and even in the current landscape, we expect the mortgage sector to post further positive growth over the coming years.”
