More than 51,000 additional homes could have been within reach of first-time buyers (FTBs) in the past year, according to analysis from Leeds Building Society, following recent adjustments to mortgage lending rules.
The mutual found that 65% more homes in England and Wales would have been affordable to first-time buyers under updated affordability assessments, based on changes made by lenders after the Prudential Regulation Authority (PRA) relaxed restrictions on higher loan-to-income lending earlier this year.
Using Land Registry data between 1st July 2024 and 31st June 2025, Leeds Building Society calculated that the number of homes affordable to first-time buyers on a £30,000 income rose from 86,915 to 143,017 — an increase of 51,602 properties.
The society recently reduced its minimum income requirement to £30,000 and adjusted its loan-to-income ratios, allowing eligible buyers to borrow up to 95% loan-to-value (LTV).
As a result, a single or joint applicant earning £30,000 could now borrow up to £165,000 to purchase a home worth approximately £173,000.
Previously, the same borrower could only afford homes worth up to £141,000.
Leeds Building Society has also lowered its stress rate to further expand borrowing capacity.
To support brokers, Leeds has also launched a dedicated first-time buyer online hub outlining its product options and guidance.
Martese Carton, director of mortgage distribution at Leeds Building Society, said: “Affordability remains a challenge for many would-be homeowners, with house prices still outpacing wage growth in several regions.
“But brokers should be reassured to know that a £30,000 income is enough to help their clients achieve their homeownership dreams.
“According to our analysis, the number of homes available to buy has increased hugely as a result of affordability changes made across the market, and increasing our maximum loan for those earning £30,000 or more means that 65% more properties would have been within reach.”
Rachel Geddes, strategic lender relationship director at the Mortgage Advice Bureau, added: “It’s an undeniable fact that affordability remains the single biggest hurdle for aspiring homeowners.
“Our research shows 65% of renters aspire to buy, yet a discouraging 27% believe homeownership is completely out of reach.
“The truth is, many aspiring buyers simply don’t realise they’re in a position to get on the property ladder. Our job as brokers is to change this narrative and raise awareness of the innovative mortgage products available.
“Leeds Building Society’s recent lending criteria adjustments and wider first-time buyer range represent a crucial step in our industry’s commitment to making homeownership accessible, empowering brokers to say ‘yes’ to even more customers.”
