Over four in five (82%) mortgage brokers have said they are now feeling "more positive" about the sector’s prospects compared to the start of 2024, Nottingham Building Society has found.

The society’s latest research revealed that 79% of brokers expressed confidence that the housing market will experience growth over the next three years.

This is despite challenges such as the current economic backdrop, the increase to stamp duty in April and falling rent prices causing worries for buy-to-let buyers.

The Nottingham said that to reach this growth, brokers are wary of the need to navigate ongoing challenges. Top concerns cited by brokers which the society said "dampened their optimism" for the year ahead were uncertainty over the wider economy (35%), and continued high interest rates (27%).

Other concerns included the ongoing cost of living crisis (24%), high house prices (22%) and the lack of new homes being built in the UK (22%).

The building society stated that these worries are "not unfounded", after the Bank of England held interest rates at 4.75% in January, while the supply of new homes in the UK experienced a fall in the 12 months to September 2024.

Although the research found that the market was optimistic overall, brokers also shared where they see room for improvement in the sector.

Two in five brokers (41%) said that the mortgage process is the same or slower than it was two years ago, prompting a further 31% to call for greater progress in introducing technology to streamline the application process and help borrowers secure their homes more quickly.

Chief lending officer at Nottingham Building Society, Praven Subbramoney, said: "It is promising to see brokers’ optimism and feeling of resilience within the sector compared to a year ago, especially within the context of ongoing economic challenges and the pace of change across the sector. We are committed to maintaining this ongoing dialogue with brokers to understand their concerns and pressures, so that we can evolve our products and services to serve them and their clients.

"As lenders we can't ignore the concerns brokers are voicing, including the speed of the mortgage process and their calls for further integration of technology to streamline the process. It is only by continuing to collaborate with brokers and the industry we can enhance our offering, helping borrowers to achieve their homeownership goals. Together, we have a responsibility to drive the progress that will ensure the sector’s long-term growth and success."

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