For many would-be homeowners, affordability has long been the biggest obstacle. But new data suggests that more first-time buyers could now step onto the property ladder — and you might be one of them.
Recent analysis from Leeds Building Society, using official Land Registry data, shows that over 51,000 more homes would have been affordable to first-time buyers in England and Wales over the past year, thanks to changes in how mortgage lenders assess affordability.
That’s a 65% increase in the number of homes within reach — all because of recent adjustments to lending rules and criteria.
What’s changed?
In July 2024, the Prudential Regulation Authority (PRA) gave lenders greater flexibility around how much they can lend to borrowers in proportion to their income — especially for higher loan-to-value (LTV) mortgages. In response, some lenders, including Leeds Building Society, adjusted their affordability assessments.
This means that first-time buyers with a 5% deposit and an income of £30,000 (either single or joint applicants) may now be able to:
- Borrow up to £165,000
- Afford a home worth up to £173,000
Before the change, the same buyer could typically borrow enough to buy a home worth around £141,000. That increase of £32,000 could make all the difference.
Why does this matter?
This shift opens up a much broader slice of the housing market for first-time buyers, especially in areas where homes are just out of reach under previous borrowing limits.
If you’ve been renting or saving and assumed you couldn’t afford to buy — this change might tip the balance in your favour.
“The truth is, many aspiring buyers simply don’t realise they’re in a position to get on the property ladder,” says Rachel Geddes from Mortgage Advice Bureau. “Our job as brokers is to change this narrative and raise awareness of the innovative mortgage products available.”
How do I know if I qualify?
While these changes are a significant step forward, not everyone will automatically qualify. Affordability is still assessed based on your full financial situation — including any debts, expenses, and credit history.
But if your income is around £30,000, and you have a 5% deposit saved, you may now be eligible for a larger mortgage than expected.
What should I do next?
If you’re not sure where you stand — or if you were previously told you couldn’t borrow enough — this is the perfect time to reassess your options.
Here’s what we suggest:
- Get an updated affordability check – You might be surprised how far your income and deposit now go.
- Speak to a mortgage adviser – A broker can guide you through your options, including lenders offering more flexible terms.
- Start exploring properties – With more homes now potentially within reach, your home search could be more exciting than ever.
Ready to find out what you could borrow?
The mortgage market is changing — and for first-time buyers, it’s good news. With new rules in place and lenders adjusting accordingly, your homeownership goals may now be closer than you think.
Let’s talk. At Connect Mortgage Services, we’ll assess your unique situation and help you find out if you could now afford the home you’ve been waiting for.
Source credit: Figures and statements referenced in this article are sourced from Leeds Building Society’s analysis of Land Registry data (1 July 2024 – 31 June 2025) as reported by Financial Reporter and The Intermediary. Financial Reporter+2Intermediary Mortgage News
