Recent research from both eXp UK and the Building Societies Association (BSA) has underlined just how fragile first-time buyer sentiment has become in the run-up to the Autumn Budget - and, perhaps more importantly, how this group’s priorities have matured.
The message from aspiring homeowners appears to be loud and clear: they don’t want gimmicks, they want genuine change.
According to eXp UK, almost half of first-time buyers have paused their homebuying plans until after the Budget, but not because they’re waiting for stamp duty cuts or quick political wins.
In fact, just one in five respondents said stamp duty reform should be a Government priority. The rest want something far more fundamental - real improvements in housing affordability, new or expanded schemes that provide meaningful support, and a long-term focus on housing supply.
That view is backed up by the latest BSA Property Tracker report, which found 58% of prospective homeowners can’t raise enough for a deposit, and more than half (54%) would struggle with the cost of monthly mortgage repayments.
In other words, the barriers to entry are not just financial; they’re psychological too. When fewer than one in five people believe now is a good time to buy, confidence becomes a factor in itself.
And that’s the real issue: confidence. We’ve reached a point where uncertainty - about policy, pricing, and even process - is now part of the problem.
As Paul Broadhead at the BSA rightly put it, “speculation about changes to property taxes may grab headlines, but it risks damaging confidence and creating unnecessary volatility”.
Every time a Budget looms or housing policy is floated in a headline, the market hesitates. Buyers stop to see what might happen next, lenders wait to see how it will land, and activity stalls.
That cycle helps no one. It creates a false sense that the next Government announcement might solve affordability, when in reality, there is no single fix. A stamp duty tweak, for example, might create a short-lived surge in activity, but as we’ve seen before, it then can lead to increased demand and drive up prices.
What first-time buyers need instead is a stable policy environment and consistent access to fair, flexible, high LTV mortgage products that reflect today’s economic realities.
Encouragingly, the eXp UK research shows that first-time buyers already understand this. They aren’t asking for handouts, they’re asking for a level playing field.
They recognise the real solution lies in tackling the shortage of affordable homes, easing deposit pressures, and ensuring mortgage products work for their needs, particularly those who can only access lower deposit levels. That’s a positive shift in mindset and one the industry should meet with equal maturity.
Lenders, of course, have a critical role to play in ensuring first-time buyers aren’t locked out of the market simply because of deposit constraints.
Even in a more uncertain environment, the industry can maintain its support for higher LTV lending, provided it’s done in a responsible and sustainable way.
That’s where risk solutions such as private mortgage insurance can make a real difference, giving lenders the confidence to lend to creditworthy borrowers who don’t have large deposits, while ensuring prudence is maintained across the system.
For advisers, the challenge is to help first-time buyers navigate this period of uncertainty with clarity and reassurance.
Many of those waiting on the sidelines could, in fact, buy today, they just need expert guidance to understand what’s achievable and which products or lenders remain active in this space. Brokers remain the bridge between aspiration and action, helping clients make informed decisions rather than pausing for the next policy announcement.
If the market feels clouded by uncertainty, restoring confidence has to be a collective effort between lenders, advisers, and policymakers.
That means moving away from short-term incentives and focusing instead on consistency, transparency, and sustainable lending practices. It also means recognising that innovation doesn’t just come from new schemes, it can come from better risk management, smarter partnerships, and a shared commitment to long-term affordability.
So while attention will inevitably turn to what the Chancellor has to say later this month, the real progress may actually come from within the industry itself, by continuing to back first-time buyers, enabling higher LTV lending responsibly, and proving confidence in the housing market can be rebuilt from the ground up.
