Yes it needs repoting
Plenty of roots, bad soil, pot a little too small for a tree in training.
But...
Is this the right time to do a repot in your area? Do you have access to a good soil mix for bonsai? Do you have a new bigger pot? Do you know how to trim the roots, wire the tree to the pot, put on the mesh over the drainage holes, and how to water it afterwards?
If all answers are yes, then go ahead.
Thank you for you replay! The answer is yes, good soil is available, and so are bigger pots for bonsai trees. Is it the right time in my area? I would think so, since the weather is finally warming up, here in Cambridge, UK. Do I know how to trim the roots, wire the tree to the pot, put on the mesh over the drainage holes, and how to water it afterwards? I am afraid I do not - I wrote in my introduction that I am a beginner. But I am watching tutorials on a few specialized websites and I am looking for books to read. Would you suggest that I bring it to a specialized nursery?
Thanks!