Quarterly FTB applications fall 9.1% as economic uncertainty weighs on confidence: YBS – Mortgage Strategy
A delayed reaction among first-time buyers may now emerge, as new economic and market uncertainties begin to take a toll on homeowner confidence following a long period of stability, insights from Yorkshire Building Society reveal.
The statistics, based on a public analysis of the latest loan application data from CACI of data and technology, show that applications for first purchases decreased by 9.1% in the second quarter of 2026 compared to the same period last year.
Between 30 March and 28 June 2026, 119,749 first-time buyers applied for a loan, down from 131,682 in the same period in 2025.
Despite the withdrawal of Stamp Duty benefits in April 2025 and ongoing affordability challenges, first-time buyer activity has been relatively strong, with applications holding firm in the first three months of this year, with a slight increase of 0.6% compared to Q1 2025.
However, the public says that recent figures suggest volatility in market rates and interest rates linked to tensions involving the US and Iran, may now cause some potential buyers to delay purchasing decisions.
In the first six months of 2026, first-time buyer activity decreased by 4.3% from 257,330 applications in H1 2025 to 246,197 in the same period this year.
In contrast, applications to move home fell 7.9% in Q2, to 103,197 from 112,100, but have remained flat for the year to date, with a drop of just 1.1% from 211,843 transactions to 209,471 since January 1.
Yorkshire Building Society group economist Max Shepherd says: “The housing market has faced a number of 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 reduce demand, their purchasing activity has remained strong and has continued to exceed long-term expectations.”
“However, as many had feared and expected, the economic environment has become more uncertain in recent months. The rise in international tensions, volatility in financial markets and questions about the future path of interest rates appear to be affecting confidence across the market.”
“The fact that first-time buyers and home movers both saw a decline suggests that this is part of a broader softening in consumer sentiment rather than a fundamental shift in home ownership.”
Shepherd adds: “Affordability continues to stretch particularly for many first-time home owners, meaning further uncertainty can have a negative impact on those trying to take their first step onto the property ladder.
“While one in four does not establish a long-term trend, these figures underscore the importance of continuing to support first-time buyers whenever possible. They play a vital role in maintaining healthy housing markets and maintaining home buying chains across the country.”
