What did the housing market really look like in 2025? While national headlines often focus on house prices and interest rates, Bird & Co’s internal conveyancing data provides a deeper view into how buyer behaviour is shifting on the ground.
Following a period of economic uncertainty, regulatory change and sustained cost-of-living pressures, 2025 appears to have been shaped by a growing divide between first-time buyers entering the market and existing homeowners or investors stepping back.
By analysing Bird & Co’s internal client data from 2025, we can identify several notable trends that highlight how priorities, motivations and purchasing behaviour continue to evolve.
Bird & Co’s Expert Home Buying Insights from 2025
- First-time buyers made up 76% of Bird & Co’s clients, rising steadily from 71% in 2024.
- 24% of buyers already owned a residential property, down from 29% the year before and continuing a decline observed since 2022.
- 83% of buyers were purchasing a property as their main residence, up from 81% in 2024.
- New-build purchases declined moderately again, falling from 10% in 2024 to 9% in 2025.
- Around 43% of properties were purchased for business purposes, marking a notable rise from 2022 and 2023, when only about one in three purchases were made for this purpose.
- 9% of buyers had partners who already owned another property, down from 11% in 2024.
- 61% of buyers said they were purchasing their first home with the intention of living in it, up from 56% the previous year.
- Non-UK resident buyers accounted for 3.71% of purchases, edging up slightly from 3.51% in 2024.
Taken together, these figures suggest that the housing market in 2025 became increasingly focused on first-time buyers and owner-occupiers. Fewer purchases last year involved existing property wealth or complex ownership arrangements.
Bird & Co Home Buying Trends: What 2025 Data Reveals from Our Clients
First-Time Buyers Dominated the Market in 2025
First-time buyers accounted for 76% of Bird & Co’s clients in 2025, up from 71% in 2024, continuing a steady upward trend seen over recent years.
This growth suggests that first-time buyer demand remained strong throughout 2025, despite affordability pressures and higher borrowing costs compared to historic lows. In many areas, the cost of renting continued to rise, narrowing the gap between renting and buying and making homeownership a more appealing long-term option for some.
Importantly, first-time buyers were not simply entering the market cautiously. The proportion of first-time buyers purchasing a property with the intention of living in it rose from 56% in 2024 to 61% in 2025, reinforcing the idea that many were committing to owner-occupation rather than viewing their purchase as a short-term stepping stone.
This trend may reflect shifting attitudes towards housing security, particularly among younger buyers who have experienced rental instability, frequent rent increases or limited availability of suitable rental properties. For these buyers, homeownership may offer greater control over housing costs and living conditions, even if it requires careful budgeting.
Fewer Buyers Entered the Market with Existing Property Wealth
In contrast to rising first-time buyer activity, the proportion of buyers who already owned a residential property fell to 24% in 2025, down from 29% in 2024, continuing a decline observed since 2022.
This pattern indicates that fewer existing homeowners were moving house or expanding their property portfolios during 2025.
Several factors may have contributed to this trend:
- Higher mortgage rates reducing the incentive to move.
- Rising transaction costs, including stamp duty and legal fees.
- Broader economic uncertainty discouraging discretionary decisions.
For residential investors, stricter energy efficiency requirements may also have influenced behaviour. The government’s target for homes to reach an EPC rating of C by 2035 may have reduced appetite for further residential investment, particularly among landlords with limited portfolios.
Complex Ownership Arrangements Became Less Common in 2025
Another notable trend in 2025 was the continued decline in buyers whose partners already owned another property.
This figure fell to 9%, down from:
- 11% in 2024
- 13% in 2023
- 14% in 2022
This suggests that fewer buyers were entering the market with access to additional housing equity or complex ownership structures, and further reinforces the idea that 2025’s market may have been shaped largely by buyers without inherited or accumulated property wealth.
Demand for New-Build Properties Fell Again in 2025
Despite ongoing emphasis on energy efficiency and modern housing standards, new-build purchases declined again in 2025, cementing a prior trend:
- 2025: 8.5%
- 2024: 10.4%
- 2023: 11.2%
- 2022: 13.7%
- 2021: 14.4%
This pattern appears to sit at odds with government ambitions to increase housing supply and promote new developments.
Possible explanations for this trend include:
- Higher purchase prices limiting affordability.
- Limited availability of suitable developments in high-demand areas.
- Continued buyer preference for older or period properties.
For many buyers, space, location and character may have outweighed concerns about energy efficiency, particularly where improvements could be made over time.
Business-Related Property Purchases Played a Larger Role in 2025
One of the most striking findings from the 2025 data is the proportion of properties purchased for business purposes, which rose to around 43%.
This represents a clear increase compared with 2023 and 2024, where roughly one in three buyers acquired property for business use. Interestingly, while residential investment appeared to be softening, business-related property continued to attract sustained interest.
This trend may reflect evolving working patterns, including ongoing demand for flexible office space, mixed-use properties or premises supporting home-based businesses. It may also suggest that some buyers were diversifying into business-use property as a way to manage risk during uncertain economic conditions.
Notably, only a relatively small proportion of purchases were made by companies (5%, down from 9% the previous year), suggesting that many business-use acquisitions were made by individuals. This may point to self-employed buyers or independent investors seeking opportunities outside traditional residential letting.
Overseas Buyer Activity Stabilised in 2025
After declining between 2023 and 2024, the proportion of purchases made by non-UK residents edged up slightly in 2025, rising from 3.5% to 3.7%.
While still a small share of overall transactions, this increase suggests a degree of stabilisation in overseas buyer activity during the year.
However, ongoing regulatory considerations, taxation changes and geopolitical uncertainty likely continued to limit the scale of overseas investment.
Government Policy and Its Impact on the 2025 Market
Government policy played an important role in shaping buyer behaviour throughout 2025.
Support for first-time buyers, including schemes such as the Lifetime ISA, appeared to align with the growing share of first-time buyer activity. Meanwhile, tighter energy efficiency regulations likely contributed to reduced activity among landlords and residential investors.
At the same time, government ambitions to accelerate housebuilding were not yet reflected in buyer behaviour, with demand for new-build properties continuing to decline.
What Buyer Behaviour in 2025 Suggests for 2026
The dominance of first-time buyers, combined with high levels of owner-occupation, suggests that demand in 2026 is likely to remain driven by people seeking long-term housing stability.
Heading into 2026, the data suggests:
- First-time buyers are likely to remain the largest buyer group.
- Existing homeowners may continue to delay moving decisions.
- Investment-led residential activity may remain subdued.
If rental costs remain elevated and mortgage rates stabilise, first-time buyer demand could continue to underpin market activity.
Government Policy and the Outlook for 2026
Government policy is expected to remain a key influence throughout 2026.
Measures designed to support first-time buyers, including the Lifetime ISA, may continue to help some buyers enter the market. However, affordability constraints and deposit requirements are likely to remain significant challenges.
At the same time, stricter energy efficiency regulations may continue to reshape landlord behaviour, while government ambitions to increase housing supply may take time to translate into meaningful changes in buyer demand.
Considering a Property Purchase in 2025?
Whether you are buying your first home, moving house or purchasing a property for business purposes, Bird & Co’s experienced conveyancing team is here to help.
We’re optimistic for the housing market in 2026 and can assure potential buyers of a safe pair of hands ready to guide you clearly and efficiently through your conveyancing endeavours.
Visit our website to request a conveyancing quote and take the next step with confidence.
Methodology
These statistics are drawn from Bird & Co’s internal conveyancing database and are based on client form submissions during 2025. The conclusions drawn from our dataset are the interpretations of Bird & Co’s research team only.
All figures have been calculated using completed responses only. Where questions were unanswered, those entries were excluded from the relevant analysis.
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