The lender looked into how the annual revenue of the broker market has performed over the last decade, and what it may mean for the brokers in the immediate future. Data from IBISWorld found that revenues have grown each year since 2013, with each new year setting a new record high.
For example, the size of the mortgage broker market in 2013 was found to be £918m, across an estimated 4,676 businesses. That works out at an average revenue of £196,407.
However, this rocketed in the following year, with the market size rising by just short of 30 per cent, while average broker revenues rose by almost a quarter.
2016 was also a big year for market growth, with an increase of a little over 19 per cent, while broker revenues moved up by 19.6 per cent to an average of £307,933.
By 2022 the size of the market had moved to £1.878bn, according to the analysis, with the estimated number of mortgage broker businesses hitting 5,615. This works out as an estimated revenue per business of £342,469.
Octane suggested this growth is likely to continue in 2023, despite the difficulties impacting the property market at the moment.
Its analysis suggests that the overall market will grow by 2.6 per cent in 2023, to a total of £1.926bn. It also forecasts the number of mortgage businesses to grow to 5,615, meaning the average business will see their revenues increase by £559 to £343,028.
Octane pointed out that the current market conditions, with rising mortgage interest rates and falling transaction levels, may lead to at least a slight market decline, yet this is countered by the sector’s resilience.
Jonathan Samuels (pictured), CEO of Octane Capital, said the “mortgage industry is standing firm” even in a period of economic strife and uncertainty.
He continued: “Even in tough times, homeownership is one of the driving aspirations of the nation and it’s the army of mortgage brokers who play a pivotal role in helping realise this aspiration. While this remains the case, the sector will continue to prosper, despite what’s thrown at it.”
