Making home ownership more affordable has long been a priority.
First-time buyers (FTBs) are important, not only because owning a home should be a realistic aspiration for as many people as possible, but also because they are fundamental to the health of the wider housing market.
When FTBs are able to move, chains build, homeownership progress and market momentum stabilizes.
If FTBs back off, government and industry must take action
After a few challenging years, 2025 brought real reasons for optimism. FTB activity has reached near-record levels, supported by improving economic conditions, lower mortgage rates and industry-wide innovation to support affordability. Encouragingly, the new data shows that momentum is holding in 2026 – but the coming months could show that they are taking a hit.
The latest analysis from Yorkshire Building Society shows that FTB applications for the first quarter (Q1) of 2026 were significantly lower compared to the same period last year, increasing by 0.6%. At first glance, that number may seem modest. In fact, it represents a tightening following a special increase in early 2025 when many buyers rush to complete purchases before stamp duty benefits are withdrawn.
Between late December 2025 and the end of March this year, approximately 126,500 FTBs applied for loans. This follows a 12% increase the previous year, when activity reached its highest level since the 2022 pandemic. Stability after such a strong year is not to be taken lightly.
Confidence remains fragile. Many prospective buyers underestimate what is possible now
FTBs continue to underpin the housing market again, accounting for 54% of mortgage-backed home purchases in Q1 2026. In 2025 overall, UK financial data shows there were 391,210 FTB completions – a 17.8% increase on 2024 and close to York’s post-20 Covid 21 peak. this progress, almost a third (28.6%) of our total lending by 2025 helping FTBs get on the ladder.
New flexibility
However, this robustness comes with a caveat.
The conflict in Iran has caused fresh volatility in financial markets, although things have stabilized. However, it has boosted mortgage rates and confidence, and FTBs – which often work with very small amounts – are particularly exposed.
Rethinking targeted support – including FTBs’ stamp duty programs – will send a strong signal
As Q2 continues, there is a real risk that these new affordability pressures and uncertainty will start to deter consumers. That would be a huge setback.
Before this renewed upheaval, the industry finally saw the benefits of positive regulatory changes. Greater flexibility in terms of stress levels and higher loan-to-value ratios have allowed lenders to assess affordability more realistically. For us, the swift adoption of these changes by 2025 has enabled qualified borrowers to borrow thousands more in many cases, and made the difference between buying or missing out.
Product innovation also plays an important role. Our £5K Deposit Mortgage, now in its second year, has helped over 1,800 people buy their first home with just a £5,000 deposit on properties up to £500,000. Products like this recognize the reality many FTBs face: strong wages but limited ability to save while hiring.
However, confidence remains fragile. Many prospective buyers underestimate what is possible now. Interviews with retail partners consistently suggest that lack of awareness and education is still a major barrier, with some buyers needlessly excluding themselves. This emphasizes the important role that retailers play in re-evaluating previous decisions, educating customers and using flexible affordability tools to choose the right solution from a growing range of options.
When FTBs are able to move, chains build, home owners progress and market momentum stabilizes
All this points to why the coming months are so important. If the Q2 data shows that FTBs are beginning to reverse, the government and industry must be ready to act quickly to protect the progress that has been made. Rethinking targeted support – including FTBs’ stamp duty programs – will send a strong signal.
It is good news that the regulator has announced that the renewed flexibility around accessibility will not be rolled back at the time it is so badly needed; and it is hoped that supportive measures such as these will be maintained and built upon.
The importance of addressing housing supply has never been greater, either. Building more homes remains critical to addressing the long-term affordability pressures on FTBs.
Chris Hill is head of sales at Accord Mortgages
This article appeared in the June 2026 issue of Mortgage Strategy.
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