Broker confidence in the economic outlook dipped slightly in Q3, with many looking for stamp duty reforms, tax adjustments and more first-time buyer support in the upcoming Autumn Budget.
According to HSBC’s latest Broker Barometer, which surveyed around 465 mortgage brokers, around 61% of brokers rated their confidence in the economy at five or above, a drop from 78% in Q2.
Brokers’ main calls for the Autumn Budget, which is set for 26 November, include tax adjustments in the form of tax cuts and rises to tax band allowances.
Other suggestions include stamp duty reform, more support for first-time buyers in the form of Help to Buy schemes and stamp duty exemptions, and housing market stimulation in the form of targeted investment, especially for affordable housing.
Brokers expect fall in activity but say affordability improvements have boosted lending
Brokers in the survey said they expect residential application volumes and market activity to “soften” after the summer period, with 35% expecting an increase and 44% expecting the current level to remain.
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However, the vast majority of brokers – 67% – still describe 2025 as a “good year” for the mortgage sector and morale “remains high”.
The report noted that most brokers continue to report that recent lender stress rate adjustments have made a “meaningful difference for borrowers”, with 63% saying that lending has increased since affordability assessments have been eased.
Around 69% brokers rate their overall happiness at seven out of 10 or above – in line with earlier this year – and over 80% said they plan to stay in the industry long term.
Nearly two-thirds of brokers expect their firms to grow over the next 12 months, with 11% expecting their firm to see significant growth in the next year.
Brokers support Project 28 ambitions to cut sale agreed to exchange timeline
HSBC added that support for Project 28 from brokers was strong, with 89% saying they see it as a step forward for the industry and almost a third saying they saw it as a significant step forward for the sector.
Project 28 was launched earlier this year by 23 firms and aims to lower sale agreed to exchange times to 28 days, cut fall-throughs and boost economic growth. This is down from an average of 109 days in 2024.
Around 65% of brokers said the provision of relevant upfront information was crucial to improving transaction times, while 53% pointed to the early instruction of conveyancers and 49% cited access to secure and interoperable data.
Approximately 48% of brokers said early commissioning of leasehold packs would help transaction times, as it would avoid late-stage legal delays.
Nearly two-thirds of brokers said 1-2 years was a “reasonable” time frame to cut the sale agreed to exchange contracts time frame to 28 days.
‘Brokers remain pragmatic and positive about the year ahead’
Chris Pearson, head of intermediary mortgages at HSBC UK, said the latest report “shows a profession that’s realistic about the current market but content with how the year has gone so far and confident about the direction the industry is heading”.
He explained: “Despite some economic uncertainty, brokers remain pragmatic and positive about the year ahead. Confidence in the market, coupled with the continued high levels of job satisfaction we’re seeing in the Broker Happiness Index, shows an industry that’s grounded but optimistic – and committed to supporting customers through changing conditions.
“Brokers are strongly backing initiatives like Project 28, recognising the power of innovation to improve the home buying experience for their customers. Their support for Project 28 underlines a shared commitment across the industry to make the home buying journey faster, more transparent and more efficient – something that will benefit brokers, customers, lenders and conveyancers alike. Project 28 represents a real opportunity to simplify one of life’s most stressful experiences – and brokers are fully behind it.”
Pearson said brokers have sent a “clear message” to Chancellor Rachel Reeves that the Autumn Budget should include measures that “support affordability, stimulate housing supply and simplify taxation will make a real difference, but the priority must be reform of stamp duty”.
“The feedback shows a profession that understands the wider economic context and wants to see long-term, sustainable growth in the housing market, not just short-term fixes.
“The mortgage industry is evolving rapidly, and the broker community continues to be at the heart of that change. Whether it’s championing innovation through Project 28 or calling for sensible reforms that make homeownership more accessible, brokers are helping to shape a more modern, efficient, and customer-focused market,” Pearson concluded.
