First-time buyers are quietly gaining ground in Lancaster and Morecambe

It is easy to assume that first-time buyers have been pushed out of the property market. With higher mortgage rates, rising living costs and the challenge of saving a deposit, the last few years have not been easy for people trying to buy their first home.

However, the latest FCA mortgage data paints a more encouraging picture. The overall make-up of the mortgage market has remained remarkably steady over the last 10 years, but there is one clear change. First-time buyers are now taking a larger share.

They currently account for 27.4% of mortgage lending, compared with the 10-year average of 23.6%. In simple terms, first-time buyers are playing a bigger role in the market than they have done historically.

For Lancaster and Morecambe, that is important. We have always had a strong first-time buyer market, helped by a wide mix of terraced homes, apartments, smaller semis and more affordable options compared with many parts of the UK.

Buy-to-let has taken a step back

The rise in first-time buyer lending has been almost entirely offset by a fall in buy-to-let mortgages. Buy-to-let now accounts for 8.9% of mortgage lending, compared with an average of 11.5% over the last decade.

That shift did not happen by accident. A major turning point came with the introduction of higher stamp duty rates on second homes in 2016, followed by further changes in 2024. These extra costs have made some landlords more cautious, especially when combined with higher interest rates, tax changes and tighter affordability calculations.

Locally, we still see demand from landlords in Lancaster and Morecambe, particularly where the figures work and rental demand is strong. However, investors are being more selective. They are looking carefully at yield, condition, compliance costs and long-term returns before committing.

At the same time, this has created more room for first-time buyers in parts of the market where landlords may once have been stronger competition.

What this means locally

For sellers, this is useful to understand. First-time buyers are often in a good position because they do not usually have a property to sell. That can make a sale simpler, with fewer links in the chain.

However, they are also price-sensitive. They know their budget, they understand monthly repayments, and they will quickly move past a home if it feels overpriced or poorly presented.

In Lancaster and Morecambe, this is especially relevant for two-bedroom terraces, apartments, smaller semis and homes close to good transport links, the universities, hospital, city centre, seafront and local amenities. These are the homes many first-time buyers naturally look at.

Of course, the rest of 2026 may still bring some movement. Interest rates, affordability and buyer confidence will all continue to shape how the market behaves.

Even so, the message is clear. First-time buyers have not disappeared. They are active, they are careful, and they are taking a bigger slice of the mortgage market than the long-term average.

Source: Dataloft by PriceHubble, FCA Mortgage Statistics, Q1 2026.