First-time buyer mortgage applications in Q2 increased by 12.4% year-on-year, coming to 131,682 applications.
Research from Yorkshire Building Society, which looked at CACI data, showed that despite 1 April stamp duty changes, first-time buyer mortgage applications have “risen by substantially more” than home mover sales.
Home mover sales increased by 8% in Q2 2025 compared to the same period in 2024. This is equal to 112,100 compared to 103,890.
This followed Q1 figures which showed a 12% year-on-year increase, representing the highest since the 2022 post-Covid peak.
Max Shepherd, group economist for Yorkshire Building Society said: “Although the house purchase tax changes which came into force on 1 April were a real setback, first-time buyers are proving extremely resilient. This is helped by a number of positive signs emerging which could help make things easier for them going forward, such as lower mortgage interest rates, growth in real earnings and a relaxing of affordability criteria by some lenders.
“There are also signs of the emergence of a buyers’ market, where seller numbers are up 11% year-to-date compared to a 3% increase in people looking to purchase property. This could certainly help with the availability and cost of homes for first-time buyers.”
How to get your first-time buyer clients mortgage ready
Sponsored by Halifax Intermediaries
He continued: “However, I’d still urge caution until we see how this trend plays out over the rest of the year. It’s important not to forget that first-time buyers have faced a number of challenges, such as high house prices, the cost-of-living crisis and the withdrawal of the Help to Buy scheme as well as stamp duty incentives.
“While there is more mortgage and housing market stability than there was a year ago, there is ongoing volatility caused by higher-than-expected inflation, the impact of President Donald Trump’s worldwide tariff review and various geopolitical events.
“It’s clear first-time buyers need more help not less if homeownership is going to remain a realistic possibility for them, which is why we’ve called, in our home improvements policy paper, for incentives to be maintained. We wouldn’t rule out the need for further government intervention to provide a new hand up for first-time buyers, just yet.”