More than 50,000 additional homes could have been within reach of first-time buyers in the past year following changes to mortgage affordability rules across the industry, according to new analysis by Leeds Building Society.
The study found that lending adjustments – enabled by new rules on the proportion of higher loan-to-income mortgages – would have made 65% more properties affordable to entry-level buyers in England and Wales.
The shift follows the Prudential Regulation Authority’s decision in July to allow lenders greater flexibility to advance higher multiple loans.
In response, Leeds Building Society revised its affordability assessments for first-time buyers, cutting its minimum income requirement to £30,000 and increasing its loan-to-income ratio.
BORROW MORE, BUY MORE
The changes mean single or joint applicants on this income can now borrow up to 95% loan-to-value, equivalent to £165,000 – enough to purchase a property worth around £173,000.
By comparison, under previous affordability models, the same buyers could only have afforded homes up to £141,000.
Based on Land Registry data between July 2024 and June 2025, Leeds estimates that if the new lending rules had applied throughout that period, 143,017 homes would have been affordable to eligible first-time buyers, up from 86,915.
BOOSTING HOMEOWNERSHIP
The Society’s move forms part of a broader push to widen access to homeownership. Alongside its new affordability model, Leeds has launched several first-time buyer initiatives, including its Income Plus range, which allows borrowers to access loans of up to 5.5 times their income, and its Reach Mortgages for those with lower credit scores.
The lender also works with Experian Boost to help borrowers improve their credit standing and offers a Home Deposit Saver account to encourage long-term saving.
To support brokers, Leeds has introduced a dedicated first-time buyer hub to help intermediaries navigate its expanding product range.
AFFORDABILITY CHALLENGE
Martese Carton, Director of Mortgage Distribution at Leeds Building Society, says: “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.”
GETTING ON THE LADDER
Rachel Geddes, Strategic Lender Relationship Director at the Mortgage Advice Bureau, says the changes are helping to reshape perceptions of what’s possible for new buyers.
She adds: “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.”
