According to Yorkshire Building Society’s analysis of CACI data, first-time buyer mortgage applications went up by 9.1% year-on-year in Q3, showing a “slowing-down in the rate of growth year to date”.
The report found that from 30 June to 30 September, there were 123,149 first-time buyer applications, compared to 112,630 in the same period last year.
So far this year, there have been 380,479 first-time buyer mortgage applications compared to the same period last year.
Yorkshire Building Society said in a policy report last year that the government should do more to increase first-time buyers’ access to affordable mortgages.
This could include further regulatory review to help people access home funding more easily, more stamp duty incentives for first-time buyers and the introduction of a more “fit-for-purpose” Help to Buy scheme.
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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.”
