Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

FCA Data Reveals 45% Drop in Credit Broker Permissions Since Pandemic

The number of licensed ‘credit broker’ firms in the UK has fallen by 45% since the Covid-19 pandemic, according to Financial Conduct Authority (FCA) records obtained via a Freedom of Information request by BTG. The most significant reduction has been among sole traders and partnership firms holding ‘credit broking’ licences.

FCA data shows that sole traders with ‘credit broking’ licences dropped by 46.1% to 2,821 in Q1 2026. Partnership firms saw a 42.2% reduction, with numbers falling to 1,236 in the same period. In total, there were 4,057 sole traders and partnerships with ‘credit broking’ permissions to negotiate funding deals for businesses, down from 7,371 in Q1 2020. The rate of decline has averaged just under 10% per year, increasing to 10.5% in the last 12 months.

The FCA also reported a decrease in ‘other’ firms with ‘credit broking’ permissions, with numbers falling 31% to 23,901 in Q1 2026 from 34,647 in Q1 2020.

For UK letting agents and inventory clerks, these figures highlight a significant contraction in the number of firms able to broker credit for business funding. This may affect the availability of finance options for property businesses seeking to restructure or expand.