First-time buyer application growth beginning to slow

First-time buyer mortgage applications in the third quarter of 2025 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, according to Yorkshire Building Society’s latest analysis of CACI data.

In Q3 this year there were 123,149 first-time buyer applications, compared to 112,630 during the same period of 2024. In the whole of 2025 so far, there have been 380,479 first-time buyer applications compared to 341,651 up to 30th 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.”