Latest network figures - this is not to be read as which network is "best". It is to show AR movements.
For details of how it is put together, please go to www.network-consulting.co.uk
In the last network round up for Q1, I stated that this quarter should draw a line under demise of Tenet. However, by the middle of Q2, Tenet remained in the headlines when the Tenet Group appointed administrators, as reported by Mortgage Strategy on the 5th June. This final move should bring the last word in the whole Tenet saga. Thankfully, the vast majority of staff and advisers affected have found new homes.
Despite some isolated noise on adviser forums about the network model being broken, there doesn’t appear to be any negative impact on the wider market, in fact the opposite.
The table illustrates that Appointed Representative numbers not only remain stable, but actually increasing, with a net growth in AR firms of 132 since the beginning of the year. Equally advisers with mortgage permissions also remain stable. At the close of 2023, there was 15,880 advisers amongst the top networks with mortgage permissions. By the end of Q2 2024, the number was 15,680, during which period, three networks have been removed from the league table, Tenet, for obvious reasons and two other networks, as their AR numbers fell below the parameters of table, having less than 20 AR firms. From this we must take that it looks positive within network land.
A notable point is that these top networks have an average number of advisers with mortgage permissions per firm of 1.9. Although if we remove Mortgage Advice Bureau, who boast a 10.9 adviser per firm average, then this figure drops to 1.6 advisers per firm.
Taking St James’s Place out of the mix for now, as they are primarily and wealth network, the networks with the greatest net growth year to date are The Right Mortgage Network, with 31 new firms, a growth of 8.1%. Following closely is TMG, with another impressive performance of 29 firms, representing a 32.6% growth. Cornerstone also had a notable net growth of 12.7% and finally ValidPath, increasing by 27 firms, although they are also primarily a wealth network.
Future consolidation of networks is still likely to happen but like I wrote in the last quarter, there are more smaller networks on the way, possibly some disruptors amongst them.
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