Mortgage flexibility starts to reduce barriers for first-time buyers

The Building Societies Association’s (BSA) latest Property Tracker survey, conducted in January 2026, shows that the barriers preventing would-be homebuyers from achieving their aspiration remain financial – raising a deposit (64%), affording monthly mortgage repayments (50%) and access to a large enough mortgage (45%) – rather than attitudinal.

With the main obstacles tightly clustered around mortgage affordability and availability, changes to lenders’ products and policies could unlock significant first-time buyer activity. The BSA says that Building societies are already leading the way, offering flexible mortgage products tailored to individual circumstances, helping turn first-time buyer aspirations into homeownership. This momentum is expected to continue into 2026. While first-time buyers are waiting to act, pressures on older age groups may restrict movement across the wider housing market.

The research highlights that barriers facing older adults may limit the number of properties coming up for sale, and, in turn, slow activity for would-be buyers further down the chain.

A third (33%) of people aged 55 and over say concerns about job security are an obstacle to buying a home, while three in ten (30%) in this age group cite stamp duty costs as a barrier. Both pressures have intensified over the past year, up from around a quarter of over 55s in January 2025 (25% concerned about job security; 24% about Stamp Duty costs). Together, these pressures risk discouraging older homeowners from moving, reducing the supply of homes coming onto the market.

Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association, said “We are starting to see more encouraging signs for first-time buyers. The aspiration to own a home is clearly strong, with potential buyers sensibly waiting for the right moment.  As lenders continue to innovate and affordability pressures begin to ease, we are seeing how flexible mortgage products are turning that pent-up demand into homeownership.

“But unless the barriers which are starting to impact older buyers, including lack of job security and concerns about Stamp Duty costs, are addressed, movement across the wider housing market is likely to remain constrained.”