First-time buyer mortgage applications fall 9.1% in Q2
Yorkshire Building Society analysis of CACI data found first-time buyer mortgage applications fell 9.1% year on year in Q2 2026, suggesting uncertainty may be weighing on confidence.
First-time buyer mortgage applications fell 9.1% year on year in Q2 2026, according to analysis from Yorkshire Building Society.
The figures, based on mortgage application data from data and technology consultancy CACI, show 119,749 first-time buyers applied for a mortgage between 30th March and 28th June 2026.
That was down from 131,682 during the same period in 2025.
Yorkshire Building Society said the decline suggested a delayed reaction among first-time buyers may now be emerging, after a period of resilience despite affordability pressures and the withdrawal of Stamp Duty incentives in April 2025.
First-time buyer applications had held broadly steady in Q1 2026, with a marginal rise of 0.6% compared with Q1 2025.
However, over the first 6 months of 2026, first-time buyer activity fell 4.3%, from 257,330 applications in H1 2025 to 246,197 in H1 2026.
Home-mover applications fell 7.9% in Q2, from 112,100 to 103,197. However, they remained broadly flat over the year so far, with a 1.1% decline from 211,843 applications to 209,471 since 1st January.
Max Shepherd, group economist at Yorkshire Building Society, said: “The housing market has weathered several challenges over the past 18 months, including the end of Stamp Duty relief for first-time buyers last year.
“Despite concerns that this would significantly dampen demand, their buying activity remained surprisingly robust and continued to outperform expectations for much of that period.
“However, as many feared and we anticipated, the economic backdrop has become more uncertain in recent months. Increased geopolitical tensions, financial market volatility and questions around the future path of interest rates appear to be affecting confidence across the market
“The fact that first-time buyers and home-movers have all seen declines suggests this is part of a broader softening in consumer sentiment rather than a fundamental change in the underlying appetite for homeownership.”
Shepherd said the figures reinforced the need to support aspiring buyers, adding: “Affordability continues to be particularly stretched for many aspiring homeowners, meaning additional uncertainty can have a disproportionate impact on those trying to take their first step onto the property ladder.
“Some prospective buyers may simply be choosing to wait until the outlook becomes clearer.
“While one quarter does not establish a long-term trend, these figures underline the importance of continuing to support first-time buyers wherever possible.
“They play a vital role in maintaining healthy housing market activity and sustaining home-moving chains across the country.
“We have seen encouraging progress in recent years through improved market stability, greater innovation in mortgage lending and targeted affordability support. It is important that momentum is not allowed to stall because of short-term uncertainty.”
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