First-time buyer applications fell by 9.1% in the second quarter of 2026 compared with the same period last year, as economic and market uncertainty began to weigh on confidence.
The figures, based on Yorkshire Building Society’s analysis of the latest mortgage data from CACI, show that 119,749 first-time buyers applied for a mortgage between 30 March and 28 June 2026, down from 131,682 during the same period in 2025.
The decline follows a period of resilience among fledgling homeowners, with first-time buyer activity remaining relatively robust during the first quarter, despite the withdrawal of stamp duty incentives in April 2025 and persistent affordability challenges.
However, Yorkshire Building Society said the latest figures suggest market and interest rate volatility linked to tensions involving the US and Iran may be prompting some prospective buyers to delay purchasing decisions.
Over the first six months of 2026, first-time buyer activity fell by 4.3%. By contrast, home-mover applications fell by 7.9% in the second quarter to 103,197 from 112,100 but have remained broadly flat over the year so far, with a drop of just 1.1% since 1 January,
Max Shepherd, group economist at Yorkshire Building Society, said: “The housing market has weathered several challenges over the past 18 months, including the end of Stamp Duty relief for first-time buyers last year. Despite concerns that this would significantly dampen demand, their buying activity remained surprisingly robust and continued to outperform expectations for much of that period.
“However, as many feared and we anticipated, the economic backdrop has become more uncertain in recent months. Increased geopolitical tensions, financial market volatility and questions around the future path of interest rates appear to be affecting confidence across the market.
“The fact that first-time buyers and home-movers have all seen declines suggests this is part of a broader softening in consumer sentiment rather than a fundamental change in the underlying appetite for homeownership.”
Shepherd said the figures underline the importance of continuing to support first-time buyers.
“They play a vital role in maintaining healthy housing market activity and sustaining home-moving chains across the country.
“We have seen encouraging progress in recent years through improved market stability, greater innovation in mortgage lending and targeted affordability support. It is important that momentum is not allowed to stall because of short-term uncertainty,” he added.
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