They also recognise several challenges that could hinder growth outlook

UK mortgage brokers remain optimistic about the sector’s future despite ongoing economic challenges, according to new research from Nottingham Building Society.
The survey found that 82% of brokers feel more positive about the industry’s outlook compared to the beginning of 2024. Confidence in the housing market is also strong, with 79% expecting growth over the next three years. This optimism persists despite concerns such as anticipated stamp duty increases in April and declining rental yields, which have made buy-to-let investments less attractive.
While the overall sentiment is positive, brokers acknowledge several obstacles that could impact the industry’s growth. The research highlighted key concerns, including economic uncertainty, persistently high interest rates, the ongoing cost-of-living crisis, high property prices, and a shortage of newly built homes.
These concerns are supported by recent market data, with the Bank of England base rate at 4.75% in January and housing supply remaining constrained. Only 221,500 new homes were completed in the 12 months leading up to September 2024.
Brokers also highlighted inefficiencies in the mortgage process, with 41% stating that applications take as long or longer than they did two years ago. Additionally, 31% called for improved technology integration to speed up approvals and enhance the borrower experience.
According to Nottingham Building Society, maintaining open communication with brokers and responding to their feedback is crucial for addressing the changing needs of borrowers in an uncertain economic environment.
“It is promising to see brokers’ optimism and feeling of resilience within the sector compared to a year ago, especially within the context of ongoing economic challenges and the pace of change across the sector,” commented Praven Subbramoney (pictured), chief lending officer at Nottingham Building Society. “We are committed to maintaining this ongoing dialogue with brokers to understand their concerns and pressures, so that we can evolve our products and services to serve them and their clients.
“As lenders, we can’t ignore the concerns brokers are voicing, including the speed of the mortgage process and their calls for further integration of technology to streamline the process. It is only by continuing to collaborate with brokers and the industry we can enhance our offering, helping borrowers to achieve their homeownership goals. Together, we have a responsibility to drive the progress that will ensure the sector’s long-term growth and success.”
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