The number of mortgage advisers in the UK has fallen sharply, prompting calls for greater investment in specialist training and professional development to meet growing demand in areas such as later life lending.
According to new analysis from Air, adviser numbers dropped 11% last year to 31,524, the first decline since 2020 and the largest since 2009.
The data, obtained via a Freedom of Information (FoI) request to the FCA, highlighted increasing pressure on the sector amid rising regulatory demands and an ageing adviser population.
The fall comes as the FCA’s recent policy statement (PS25/11) makes it easier for consumers to secure mortgages without advice, potentially intensifying competition and compressing margins for intermediaries.
Air warns that without diversification, many advice firms could face recruitment and retention challenges.
It points to later life lending as a growing area of opportunity, supported by strong demand from over-50s borrowers who collectively hold around £3.7tn in property wealth.
The later life lending market is expanding as more homeowners enter retirement with mortgage debt and seek flexible financial solutions, including lifetime mortgages and equity release products.
Air also notes the growing role of advisers in intergenerational wealth planning, with industry data showing that parents and grandparents contributed £9.6bn towards house purchases in the past year.
The upcoming inclusion of unused defined contribution pension funds in Inheritance Tax (IHT) from 2027 is expected to further drive demand for advice, generating an estimated £3.44bn in additional IHT receipts over three years.
Air’s Academy provides training and support to help advisers enter and succeed in this expanding market.
The platform offers accredited learning, CPD resources, and business tools to help advisers enhance skills and achieve professional status.
Will Hale, CEO of Key Advice & Air, said: “Mainstream mortgage advice is facing a series of challenges which are making it harder for firms to recruit and retain staff while remaining profitable.
“The fall in adviser numbers could accelerate as more consumers go direct to lenders. That’s why it’s crucial for firms to look at diversification opportunities and specialisms that help them stand out and protect margins.
“The over-50s market is one such area. Modern lifetime mortgages have evolved significantly, offering flexible repayment options and embedded protections. Later life lending is moving from a niche to a norm, relevant to a broad range of customers – from those who are asset-rich and cash-poor to high-net-worth individuals focused on tax-efficient wealth transfer.”
He added: “There is a major opportunity for advisers to improve customer outcomes and business performance – but only if they have the qualifications and skills to serve this rapidly growing sector.”
