First-time buyer (FTB) mortgage applications have gone up by 11.4% so far this year, but the growth is starting to slow, according to Yorkshire Building Society’s latest analysis of CACI data.
Between January and the end of September 2025, there were 380,479 FTB applications, compared to 341,651 in the same period last year.
In the third quarter alone, applications went up by 9.3% year-on-year to 123,149, up from 112,630 in Q3 2024.
However, this was a smaller increase than earlier in the year, with the previous quarter seeing a 12.4% rise.
Max Shepherd, group economist at Yorkshire Building Society, said: “These latest figures show the market remains resilient despite the recent changes in stamp duty thresholds.
“First-time buyers are continuing to show remarkable resilience despite ongoing macroeconomic and affordability challenges.
“The positive changes we’ve seen so far this year – including regulatory updates around stress-testing requirements and loan-to-income limits which have allowed mortgage providers to lend more – are likely to be playing a part in that.”
Shepherd added: “However, the growth of this important borrower group is showing signs of slowing amidst the headwinds they continue to face around high house prices and cost-of-living challenges which are preventing them from building deposits.
“This could be an early warning sign that they need more support from the Government and mortgage industry.”
Yorkshire Building Society has called on the Government and the mortgage industry to help FTBs get better access to affordable mortgages.
The society said this could mean more regulatory reviews, extra Stamp Duty incentives for FTBs, and a new Help to Buy scheme.
