First-time buyer applications remained steady in the first quarter of 2026, relative to the same period in 2025, new analysis from Yorkshire Building Society shows.
Applications were almost unchanged, rising 0.6% year-on-year, a positive sign given the increase triggered by the withdrawal of stamp duty incentives at the same time last year, which saw many first-time buyers rushing to beat the 31st March deadline.
The figures, based on latest application numbers from data and technology consultancy CACI, are particularly encouraging given wider market volatility linked to the conflict in Iran.
Between 29th December 2025 and 30th March this year, 126,448 first time buyers applied for a mortgage, compared with 125,648 last year. This follows a 12% increase recorded between Q1 2024 and Q1 2025 (rising from 111,895 transactions in Q1 2024 to 125,648 in Q1 2025), when first-time buyer activity hit its highest level since the post-Covid peak of 2022.
First-time buyers also continued to make up more than half the home purchase market in Q1 this year, at 54% of purchases – against a record 56% this time last year. Since 2017, when the stamp duty incentives were first introduced, first-time buyer applications have risen by an average of 6% in Q1 each year.
Other parts of the market also proved resilient in Q1, with home mover transactions rising 7% year-on-year and remortgage activity surging 45% as borrowers moved quickly to secure rates before lenders increased them in response to market rate fluctuations.
Max Shepherd, group economist at Yorkshire Building Society, said: “This year’s comparatively modest increase in first-time buyer applications shows resilience in difficult conditions, but confidence remains fragile.
“We feared the end of stamp duty relief could create further challenges for first-time buyers, but growth held up surprisingly well through 2025.
“However, the external market impact now coming through could affect first-time buyer activity going forward – with higher interest rates potentially affecting their affordability and confidence in Q2. If uncertainty continues – and inflation, interest rates and the general cost of living remain under pressure – we could see even more would be buyers pause their home-purchase decisions.
“That would be a real setback. Before this turbulence, we were finally seeing positive momentum return: improving economic and market stability, easing mortgage rates and greater innovation across the industry to support affordability. Our market thrives on stability and the current volatility is concerning, though it is to be hoped that the conflict can be resolved and we can return back to a more positive trajectory fairly soon.”
