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Start-ups signal growth in a flat market

Alex Hammond, Head of Marketing Communications at Kensington

23-Jan-2015

General consensus among industry commentators is that 2015 will offer little in the way of growth when it comes to gross lending levels. So if you are expecting to grow your business this year, you are either going to have to work even harder to win market share from your competitors, or align your business with those sectors that do look to offer growth.

One area that Kensington has been very vocal in promoting as a growth sector is the self employed market. Last year saw self-employment reached its highest level since records began, with 15% of the working population working for themselves, according to the Office of National Statistics.

Perhaps what is more interesting for mortgage brokers, however, is a set of statistics released earlier this month by a think tank called Centre for Entrepreneurs.

These statistics showed the number of company registrations at Companies House and confirm that 2014 for a bumper year for new business start-ups.

A record breaking 581,173 businesses were registered with Companies House last year, up from 526,447 in 2013 and 484,224 in 2012.

While not all company registrations will result in the launch of a new business, the figures provide a good barometer of the number of people who are setting up to work for themselves. And a record breaking year in 2014 means that there will be a significant number of people in 2015 who will have one year’s worth of accounts for their new business.

This is great news for you because any of these newly self-employed people who want to get a mortgage this year will be unable to do so from a high street lender. Indeed, lending to the self-employed based on 12 months accounts is criteria that was pioneered by Kensington and has still only been mimicked by a handful of other specialist intermediary lenders.

So it’s great opportunity for you to win new clients by offering a solution they would be unable to get by going direct to a lender.

Even better news is that Centre for Entrepreneurs has broken down the number of company registrations into regions, and we have included these regional figures below so that you can get an idea of the scale of the opportunity in your area.

So if you looking for a growth sector in a flat market, look to the record number of start-ups and a lender that can help you find a home for their mortgage.

Source: Centre for Entrepreneurs, 2015

City

Start-up Numbers

Greater London

184,671

Birmingham

18,337

Manchester

13,054

Brighton

8,344

Glasgow

8,173

Bristol

8,130

Sheffield

8,052

Nottingham

7,641

Warrington

7,529

Edinburgh

7,480

Coventry

7,059

Leeds

6,778

Leicester

6,763

Reading

6,759

Belfast

6,369

Cardiff

6,327

Guildford

6,146

Liverpool

6,032

Portsmouth

5,988

Chelmsford

5,878

Newcastle-Upon-Tyne

5,840

Northampton

5,813

Stockport

5,503

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