First-time buyer (FTB) mortgage applications increased by 12.4% on last year in the second quarter of 2025, analysis by Yorkshire Building Society has highlighted.

The society analysed data from CACI which showed that between 31 March and 30 June, there were 131,682 applications – compared to 117,126 during the same period of 2024.

Despite the 1 April stamp duty changes, FTB applications have risen by substantially more than those involving home movers, which were up by 8% in Q2 2025 (112,100) compared to the same period in 2024 (103,890).

The society’s previous analysis, released in April, showed a 12% increase in FTB applications from Q1 2024 to Q1 2025, which represented the highest since the 2022 post-COVID peak, and was also double the average annual Q1 rises since the stamp duty incentives were introduced in 2017.

Group economist at Yorkshire Building Society, Max Shepherd, said: “Although the house purchase tax changes which came into force on 1 April were a real setback, FTBs are proving extremely resilient.

“This is helped by a number of positive signs emerging which could help make things easier for them going forward, such as lower mortgage interest rates, growth in real earnings and a relaxing of affordability criteria by some lenders.”

Shepherd also suggested there are “signs of the emergence of a buyers’ market”, where seller numbers are up 11% year-to-date compared to a 3% increase in people looking to purchase property.

He added that this could help with the availability and cost of homes for FTBs.

“I’d still urge caution until we see how this trend plays out over the rest of the year,” Shepherd continued. “It’s important not to forget that FTBs have faced a number of challenges, such as high house prices, the cost of living crisis and the withdrawal of the Help to Buy scheme as well as stamp duty incentives.

“FTBs need more help not less if homeownership is going to remain a realistic possibility for them, which is why we’ve called, in our home improvements policy paper, for incentives to be maintained. We wouldn’t rule out the need for further Government intervention to provide a new hand up for FTBs, just yet.”

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