Under a third (31%) of brokers have said they are confidently looking ahead to 2024, Crystal Specialist Finance has found.

In its annual survey of over 10,000 brokers, the firm revealed that a majority (69%) were either unsure or worried about their business next year.

However, this marks some improvement compared to 2022, when 26% said they felt confident in the upcoming year.

The research by the financial services firm also discovered that only 22% of brokers believed that 2023 was a good year, down by over a quarter compared to 2022 (48%).

Managing director at Crystal Specialist Finance, Jo Breedon, said: "[This year] should have been the return to some form of normality to the market. Instead, we have seen continuous Bank of England (BoE) base rate rises to counter higher than forecast inflation and a consequent cooling of the property market. Our research has revealed that brokers remain uncertain about next year, have diversified into new markets to bolster their businesses and see the role of a distributor like Crystal as increasingly important."

Brokers’ key concerns for the year ahead continue to be led by high interest rates (74%), with this figure barely changing from 2022, when it stood at 76%.

The cost of living crisis is less of a concern for brokers going into the new year, with almost two thirds (66%) stating that they are concerned about the effects on business, compared to over three quarters in 2022 (76%).

Brokers also said they feel that base rate rises by the BoE are a thing of the past, with only 17% of those surveyed believing more rises will be implemented.

Two in five (39%) brokers have predicted a fall in the BoE base rate, however, over half of brokers polled last year thought it would drop in 2023.

Breedon added: "While the wider residential housing market has further to fall as we move into 2024, brokers are more confident about the outlook. The new year presents opportunities for the resilient broker that is prepared to venture into new markets – such as bridging, commercial finance and complex buy-to-let."

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