Yorkshire Building Society is calling for Budget action to get the housing ladder moving, as its analysis estimates a reduction in home sales so far this year equates to almost £700m in lost economic activity.
There were 25,570 fewer residential property transactions in the first eight months of 2026 than in the same period in 2025 – a reduction of more than 3%.
Over the same period, net mortgage lending increased by nearly £4bn, more than 11% up on the previous year[2].
In the first half of the year the proportion of mortgages provided for house purchase decreased,[3] while average loan size increased. High loan-to-income borrowing also went up after a relaxation of the rules[4].
The Society calculates that the drop in home sales equates to £690.4m in lost economic activity and £358m in lost Exchequer revenue[5].
It is calling on the Government to use the Budget on 28 October to tackle housing market barriers that are discouraging home buying and moving, and for support for first-time buyers to sit alongside measures that make it easier for existing homeowners to move.
Yorkshire Building Society’s Budget submission proposed permanent Stamp Duty protection for first-time buyers and targeted relief for moves that release homes and unlock chains. It also called for a targeted ‘Help to Buy 2.0’, alongside measures to encourage low-deposit lending, as well as reforms to help people save towards their first home.
The Government has since announced the Your First Home scheme which would allow first-time buyers to get on the ladder with a 2.5 per cent deposit. Yorkshire Building Society welcomes the move but argues that it should apply to existing homes as well as new builds to help unlock chains as well as increase supply.
Tom Simpson, Managing Director of Homes at Yorkshire Building Society, said: “Helping more people buy their first home matters, but we also need to make it easier for people to move as their lives change.
“Lenders are stepping up to help more people achieve their ambition of owning a home. We’re finding responsible ways to overcome affordability barriers, from lending at higher income multiples where appropriate to products like our £5k Deposit Mortgage.
“But there’s a limit to what lenders can achieve alone. The wider costs and barriers that discourage people from moving need tackling too.
“A healthy housing market needs movement at every stage – from first-time buyers getting a foot on the ladder to growing families moving up and older homeowners relocating to properties that better suit their needs.
“The Budget is an opportunity for the Government to work with lenders and the wider housing industry to break down those structural barriers and get the whole housing market moving more freely. This would help more people find the homes they need and support the economy.”
The Society’s latest housing market report, No Way Home? Restoring Britain’s Housing Ladder, set out a blueprint for getting the housing market moving more effectively.
Proposals included reviewing Stamp Duty Land Tax, enabling existing buildings to be repurposed to unlock housing supply and introducing a more fit-for-purpose version of the Help to Buy scheme. Research carried out for the report found that moving costs, Stamp Duty, a lack of suitable properties and the time and stress involved in buying and selling all discourage people from moving.
Yorkshire Building Society is the UK’s seventh biggest mortgage lender and provided 19,300 new residential mortgages in the first six months of 2026, an increase of more than 7% on the same period last year.
