First-time buyer applications remained steady in Q1 2026, according to new analysis from Yorkshire Building Society.

Application volumes were almost unchanged compared to the same period in 2025, rising by just 0.6%.

Yorkshire Building Society called the trend a “positive sign”, given the significant increase triggered by the withdrawal of stamp duty incentives at the same time last year, which saw many first-time buyers rushing to beat the 31 March deadline.

The society said its figures, based on application numbers from data and technology consultancy CACI, were “encouraging” given wider market volatility linked to the conflict in the Middle East.

Between 29 December 2025 and 30 March this year, 126,448 first time buyers applied for a mortgage, compared with 125,648 last year. This follows a 12% increase recorded between Q1 2024 and Q1 2025 – rising from 111,895 transactions in Q1 2024 – as first time buyer activity hit its highest level since the post COVID peak of 2022.

Group economist at Yorkshire Building Society, Max Shepherd, commented: “This year’s comparatively modest increase in first-time buyer applications shows resilience in difficult conditions, but confidence remains fragile.

“We feared the end of stamp duty relief could create further challenges for first time buyers, but growth held up surprisingly well through 2025.

“However, the external market impact now coming through could affect first-time buyer activity going forward – with higher interest rates potentially affecting their affordability and confidence in Q2. If uncertainty continues – and inflation, interest rates and the general cost of living remain under pressure – we could see even more would be buyers pause their home-purchase decisions.”

---