New analysis from Yorkshire Building Society shows that first‑time buyer (FTB) applications remained steady in the first quarter (Q1) of 2026, relative to the same period in 2025. Applications were almost unchanged, rising just 0.6% year-on-year, a positive sign given the exceptional increase triggered by the withdrawal of Stamp Duty incentives at the same time last year, which saw many first-time buyers rushing to beat the 31 March deadline.
The figures, based on latest application numbers from data and technology consultancy CACI, are particularly encouraging given wider market volatility linked to the conflict in Iran.
Between 29 December 2025 and 30 March this year, 126,448 first‑time buyers applied for a mortgage, compared with 125,648 last year. This follows a 12% increase recorded between Q1 2024 and Q1 2025 (rising from 111,895 transactions in Q1 2024 to 125,648 in Q1 2025), when first‑time buyer activity hit its highest level since the post‑COVID peak of 2022.
First‑time buyers also continued to make up more than half the home purchase market in Q1 this year, at 54% of purchases – against a record 56% this time last year. Since 2017, when the Stamp Duty incentives were first introduced, first-time buyer applications have risen by an average of 6% in Q1 each yearii.
Other parts of the market also proved resilient in Q1, with home‑mover transactions rising 7% year‑on‑year, and remortgage activity surging 45% as borrowers moved quickly to secure rates before lenders increased them in response to market rate fluctuations.
Max Shepherd, group economist at Yorkshire Building Society, said: “This year’s comparatively modest increase in first-time buyer applications shows resilience in difficult conditions, but confidence remains fragile:
“We feared the end of Stamp Duty relief could create further challenges for first‑time buyers, but growth held up surprisingly well through 2025.
“However, the external market impact now coming through could affect first-time buyer activity going forward – with higher interest rates potentially affecting their affordability and confidence in Q2. If uncertainty continues – and inflation, interest rates and the general cost of living remain under pressure – we could see even more would‑be buyers pause their home-purchase decisions.
“That would be a real setback. Before this turbulence, we were finally seeing positive momentum return: improving economic and market stability, easing mortgage rates and greater innovation across the industry to support affordability. Our market thrives on stability and the current volatility is concerning, though it is to be hoped that the conflict can be resolved and we can return back to a more positive trajectory fairly soon.”
While the mortgage industry cannot control the macroeconomic outlook, the Society has stressed that this latest data demonstrates that this is a time to double down on support for FTBs where possible. As outlined in its Home Improvements policy paper, published in October 2024, measures could include a rethink of the Stamp Duty incentives which, up until 1 April last year, exempted first-time buyers from the tax on properties worth up to £425,000.
Committed to making homeownership more accessible, it again urged the industry consider ways of protecting the progress first‑time buyers have made over recent years because, in many cases, they hold the key to housing market buoyancy by driving home-moving chains.
Yorkshire Building Society remains committed to supporting people onto the housing ladder. The Society was one of the first lenders to adopt loan‑to‑income regulatory changes in 2025, enabling it to lend more to eligible borrowers. Its innovative £5k Deposit Mortgage, which marked its second anniversary in March, has already helped over 1,800 first‑time buyers purchase a home with a deposit of just £5,000 on loans up to £500,000.
