Tens of thousands more homes could have been within reach of first-time buyers over the past year, according to new analysis from Leeds Building Society, following a series of changes to mortgage affordability rules.
The mutual found that 51,602 additional properties in England and Wales would have been affordable to first-time buyers had the new lending criteria been in place throughout the previous year. That represents a 65% rise in the number of homes within reach, based on Land Registry sales data between July 2024 and June 2025.
The figures reflect changes made by mortgage lenders after the Prudential Regulation Authority (PRA) relaxed the limits on the proportion of higher loan-to-income mortgages they can offer.
In response, Leeds Building Society revised its own affordability model, reducing its minimum income requirement for first-time buyers to £30,000 and increasing the maximum loan-to-income ratio.
Under the new criteria, a single or joint applicant earning £30,000 can now borrow up to 95% loan-to-value, allowing access to properties worth as much as £173,000. Previously, the same borrower with a 5% deposit could only afford homes priced up to £141,000.
Leeds said the change was part of a wider effort to support first-time buyers through a combination of product innovation and more flexible underwriting.
The lender has also reduced its stress rate to increase affordability and broadened its range of tailored products, including its Income Plus mortgages, which allow borrowing up to 5.5 times income, and its Reach range, designed for borrowers with lower credit scores.
It also offers Experian Boost integration to help raise credit scores through open banking, and a Home Deposit Saver account to encourage savings towards a first purchase.
To help brokers navigate the changes, Leeds has launched an online first-time buyer hub outlining its criteria and product options.
Martese Carton, director of mortgage distribution at Leeds Building Society, said: “Affordability remains a challenge for many would-be homeowners, with house prices still outpacing wage growth in several regions. But brokers should be reassured to know that a £30,000 income is enough to help their clients achieve their homeownership dreams.
“According to our analysis, the number of homes available to buy has increased hugely as a result of affordability changes made across the market, and increasing our maximum loan for those earning £30,000 or more means that 65% more properties would have been within reach.”
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said: “It’s an undeniable fact that affordability remains the single biggest hurdle for aspiring homeowners. Our research shows 65% of renters aspire to buy, yet a discouraging 27% believe homeownership is completely out of reach.
“The truth is, many aspiring buyers simply don’t realise they’re in a position to get on the property ladder. Our job as brokers is to change this narrative and raise awareness of the innovative mortgage products available.
“Leeds Building Society’s recent lending criteria adjustments and wider first-time buyer range represent a crucial step in our industry’s commitment to making homeownership accessible, empowering brokers to say ‘yes’ to even more customers.”
