Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

First-Time Buyer Mortgage Applications Drop 9.1% in Q2 2026

First-time buyer mortgage applications fell by 9.1% in the second quarter of 2026 compared to the same period in 2025, according to analysis by Yorkshire Building Society. The data, based on mortgage application figures from CACI, shows a decline in activity amid ongoing economic and market uncertainty.

Between 30 March and 28 June 2026, there were 119,749 first-time buyer mortgage applications, down from 131,682 in the same period the previous year. Yorkshire Building Society noted that, despite the end of Stamp Duty incentives in April 2025 and ongoing affordability challenges, first-time buyer activity had remained relatively steady in the first quarter of 2026, with a marginal increase of 0.6% compared to Q1 2025.

However, the latest figures indicate that recent market and interest rate volatility, linked to geopolitical tensions involving the US and Iran, may be prompting some prospective buyers to delay their purchasing decisions. Over the first half of 2026, first-time buyer activity fell by 4.3%, from 257,330 applications in H1 2025 to 246,197 in the same period this year.

Home-mover applications also declined, falling by 7.9% in Q2 2026 to 103,197 from 112,100 in Q2 2025. Over the year to date, home-mover applications have remained broadly flat, with a drop of 1.1% from 211,843 to 209,471 since 1 January.

For UK letting agents and inventory clerks, these figures highlight a potential slowdown in first-time buyer activity, which could impact demand for rental properties and the pace of home-moving chains. The data suggests that economic uncertainty and affordability pressures are influencing buyer confidence and market activity.