Yorkshire Building Society’s latest analysis of CACI data shows first-time buyer (FTB) mortgage applications in the third quarter of 2025 (Q3) rose by 9.3% year-on-year. However, this marks a slowing-down in the rate of growth year to date, given there has been an overall rise of 11.4% since the beginning of January.
Between 30 June and 30 September, there were 123,149 applications, compared to 112,630 during the same period of 2024[i]. In the whole of 2025 so far, there have been 380,479 first-time buyer applications compared to 341,651 up to 30 September last year.
The Society’s previous quarterly analysis, released in July, showed a 12.4% increase in first-time buyer applications from Q2 2024 to Q2 2025, with 131,682 applications compared to 117,126.
Max Shepherd, group economist for Yorkshire Building Society said: “These latest figures show the market remains resilient despite the recent changes in stamp duty thresholds”.
“First-time buyers are continuing to show remarkable resilience despite ongoing macroeconomic and affordability challenges. The positive changes we’ve seen so far this year – including regulatory updates around stress-testing requirements and loan-to-income limits which have allowed mortgage providers to lend more – are likely to be playing a part in that.
“However, the growth of this important borrower group is showing signs of slowing amidst the headwinds they continue to face around high house prices and cost-of-living challenges which are preventing them from building deposits. This could be an early warning sign that they need more support from the Government and mortgage industry.”
In its Home Improvements policy paper, the Society has called for the Government and industry to continue doing more to increase first-time buyers’ access to affordable mortgages.
This could include further regulatory review to help people access home funding more easily, more not less Stamp Duty incentives for first-time buyers and the introduction of a more fit-for-purpose Help to Buy scheme.
