First-time buyers (FTBs) continue to show greater resilience than the wider housing market, despite ongoing economic uncertainty and affordability pressures tempering activity across the sector, Yorkshire Building Society data reveals.

The comes as the government prepares to introduce its new Your First home Help-to-Buy replacement scheme.

The society’s latest analysis of mortgage application data CACI shows FTB applications fell by 3.5% in the third quarter of 2026 compared with the same period last year.

Between 29 June and 27 September 2026, 118,881 first-time buyers applied for a mortgage, down from 123,149 during the same period in 2025.

While demand among aspiring homeowners softened, the decline was less pronounced than that seen among home movers.

Applications from existing homeowners looking to move fell by 10.2% over the same period, from 108,844 to 97,732.

Meanwhile, remortgaging activity increased significantly, with applications rising by 12.0% year-on-year from 102,424 to 114,717.

YBS says this suggests many existing borrowers are prioritising securing certainty over their mortgage arrangements in a market where rates are moving very quickly, and switching providers to secure the best deals.

The recent slowdown follows an exceptionally strong period for FTBs.

After reaching a decade low in 2023, activity rebounded strongly in 2024 and 2025 with transactions reaching 332,100 and 391,200 respectively.

Against that backdrop, YBS says the latest figures suggest the rapid recovery in FTB activity has begun to moderate as affordability pressures and wider economic uncertainty continue to weigh on household finances.

YBS group economist Max Shepherd says: “It’s important to view these figures in the context of what has been a strong couple of years for first-time buyers. After activity fell to a decade low in 2023, we’ve seen two years of significant recovery, driven by improving affordability, and lower mortgage rates and innovation across the lending market.”

“The challenge for FTBs today is that mortgage rates have increased considerably since the beginning of H2, with affordability still a challenge, as moves have been driven by the global impacts of the Iran War.”

“What we’re seeing now is not a sudden fall away in demand, but a reflection of rising interest rates dampening affordability. The fact that first-time buyer activity has held up considerably better than the home mover market suggests the aspiration to own a home remains very strong.”

“This demonstrates that confidence remains sensitive to wider economic conditions and interest rates.”