Yorkshire Building Society’s latest analysis of CACI data revealed that first-time buyer (FTB) mortgage applications in Q2 rose by 12.4 % year-on-year.
Between 31st March and 30th June, there were 131,682 applications, compared to 117,126 during the same period of 2024.
In fact, despite the 1st April Stamp Duty changes, first-time buyer applications have risen by substantially more than those involving home movers, which were up by 8% in Q2 2025 versus the same period of 2024 (112,100 compared to 103,890).
The society’s previous analysis, released in April, showed a 12% increase in first-time buyer applications from Q1 2024 to Q1 2025, which represented the highest since the 2022 post-COVID peak, and was also double the average annual Q1 rises since the Stamp Duty incentives were introduced in 2017.
Max Shepherd, group economist for Yorkshire Building Society, said: “Although the house purchase tax changes which came into force on 1st April were a real setback, first-time buyers are proving extremely resilient.
“This is helped by a number of positive signs emerging which could help make things easier for them going forward, such as lower mortgage interest rates, growth in real earnings and a relaxing of affordability criteria by some lenders.”
He added: “There are also signs of the emergence of a buyers’ market, where seller numbers are up 11% year-to-date compared to a 3% increase in people looking to purchase property.
“This could certainly help with the availability and cost of homes for first-time buyers.
“However, I’d still urge caution until we see how this trend plays out over the rest of the year. It’s important not to forget that first-time buyers have faced a number of challenges, such as high house prices, the cost-of-living crisis and the withdrawal of the Help to Buy scheme as well as Stamp Duty incentives.”
Shepherd continued: “While there is more mortgage and housing market stability than there was a year ago, there is ongoing volatility caused by higher-than-expected inflation, the impact of President Donald Trump’s worldwide tariff review and various geopolitical events.
“It’s clear first-time buyers need more help not less if homeownership is going to remain a realistic possibility for them, which is why we’ve called, in our Home improvements policy paper, for incentives to be maintained.
“We wouldn’t rule out the need for further Government intervention to provide a new hand up for first-time buyers, just yet.”
