Mortgage application figures from data and technology consultancy CACI pointed to a delayed reaction among first-time buyers after a prolonged period of stability.
Between 30 March and 28 June 2026, 119,749 first-time buyers applied for a mortgage, down from 131,682 during the same period in 2025.
Over H1 2026, first-time buyer activity fell by 4.3% – from 257,330 applications in H1 2025 to 246,197.
Homemover applications also declined, falling by 7.9% in the second quarter to 103,197 from 112,100. However, homemover activity has remained mostly flat over the year so far – down just 1.1% since 1 January from 211,843 transactions to 209,471.
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Global conflict triggers purchasing delays
The mutual suggested the latest figures may reflect market and interest rate volatility linked to tensions involving the US and Iran, which could be prompting some prospective buyers to delay purchasing decisions.
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 homemovers 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.”
He added: “Affordability continues to be particularly stretched for many aspiring homeowners, meaning additional uncertainty can have a disproportionate impact on those trying to take their first step onto the property ladder. Some prospective buyers may simply be choosing to wait until the outlook becomes clearer.
“While one quarter does not establish a long-term trend, these figures underline the importance of continuing to support first-time buyers wherever possible. 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.”
