Total broker numbers at the Mortgage Advice Bureau have fallen by 4 per cent to reach 2,158 at the end of 2023.
A trading update for the year ending December 2023 said this was down from the 2,254 brokers it had at the end of 2022.
Meanwhile, the number of mainstream advisers, excluding later life advisers and directly authorised advisers, was down 8 per cent, falling from 2,074 advisers at the end of 2022 to 1,918.
The MAB said while no organic adviser growth has been assumed for the year, it expected some of its appointed representative firms to resume recruitment earlier than planned.
However, this is only expected if “current momentum” continues.
The network stated: "In terms of the addition of new AR firms, activity levels built strongly in H2 2023, and continue to do so. Our delivery of technology, lead generation and retention initiatives are proving compelling, and we expect that to be reflected in our recruitment of new firms this year."
The update reported that actual trading was “better than anticipated” in the last quarter of the year.
As a result, the group is expected to report an adjusted profit before tax that is slightly ahead of the current market consensus.
These figures come despite challenges in the market, with UK Finance estimating gross new mortgage lending for 2023 to be £226bn, representing a 28 per cent reduction on 2022.
However, despite this difficulty, the group increased its revenue for the year by 4 per cent to around £239mn.
MAB CEO, Peter Brodnicki, said: “2023 was an exceptionally challenging year with consumer confidence heavily impacted, resulting in many customers deciding to delay their house purchase or re-financing.
Brodnicki added that, against this difficult backdrop, he was “very pleased” with how MAB has “significantly” outperformed the market.
“To ensure we are in the best possible shape when market conditions improve, we have continued to invest across the entire group to drive lead flow and deliver optimal business and adviser efficiency,” he continued.
“There is a great deal to be positive about, and our technology developments and lead initiatives, including the addition of Fluent, have broadened our addressable market and strengthened our growth plans.”
tom.dunstan@ft.com
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