More than 51,000 extra homes could have been within the reach of starters in the past year if new loan rules had been applied at that time.
The way in which mortgage applications are assessed has changed in July, so that lenders can lower their affordability thresholds.
But a new analysis of the Leeds Building Society showed that if the changes had been made a year earlier, no fewer than 51,602 owners sold would have been more within the reach of starters. This amounts to an increase of 65% more homes.
The construction company, which reduced its own minimum income requirements by £ 30,000 and the loans for starters raised, used data from the Land Registry to conduct its research.
After the new permissions made available in July, many lenders made adjustments in the way they calculate affordability.
Leeds Building Society has changed the affordability assessments for mortgages for new buyers, which means that a single or joint applicant who earns £ 30,000 can borrow up to 95% loan-to-value (LTV).
It has led to starters with this salary being able to borrow to £ 165,000 and therefore buy a house worth £ 173,000.
Before these changes, a starter with a down payment of 5% could have gained access to houses worth a maximum of £ 141,000 if he had borrowed from Leeds.
With the help of Cadastral data of 1 July 2024 and 31 June 2025, Leeds Building Society calculated the number of homes that would have been affordable for eligible starters if the loan rules had been in force, from 86,915 to 143,017. This is an increase of 65%.
Rachel Geddes, director of strategic lenders at the mortgage consultancy, said: “It is not to be denied that affordability remains the biggest obstacle for prospective homeowners. Our investigation Show that 65% of the tenants strive to buy, but a discouraging 27% believes that home ownership is completely out of reach.
“The truth is that many aspiring buyers simply do not realize that they are in a position to get to the real estate ladder. It is our task as brokers to change this story and to increase the awareness of the innovative mortgage products that are available.
“The recent adjustments to the credit criteria of Leeds Building Society and the wider reach of new buyers represent a crucial step in the pursuit of our sector to make home ownership accessible, so that brokers can say ‘yes’ to even more customers.”