Inside the 2025 housing market: What conveyancing data really shows
First-time buyers dominated the housing market in 2025, accounting for more than three-quarters of all transactions handled by conveyancing firm Bird & Co, as activity from landlords, investors and equity-rich homeowners continued to decline.
An analysis of Bird & Co’s internal conveyancing figures shows that last year’s market was increasingly shaped by buyers entering homeownership for the first time, while activity linked to accumulated property wealth continued to fade.
The 2025 data highlights several trends shaping buyer behaviour:
- First-time buyers made up 76% of Bird & Co’s clients, up from 71% the previous year.
- Just 24% of buyers already owned a residential property, extending a multi-year decline.
- More than four in five purchases were made for use as a main home.
- New-build properties accounted for only 9% of transactions, falling again year on year.
- Around 43% of purchases were linked to business use, up sharply from roughly a third in recent years.
- Non-UK residents accounted for just under 4% of buyers, edging slightly higher than in 2024.
Reflecting on the findings, partner at Bird & Co, Daniel Chard, said, “In 2025, it was clear that first-time buyers were no longer a supporting act; they were driving the market. Despite ongoing affordability pressures, many were willing to commit to owner-occupation, likely influenced by rising rents and a desire for long-term stability.”
At the same time, the figures point to a market driven less by portfolio expansion and more by people securing long-term homes. Buyers entering the market with existing housing equity became noticeably rarer in 2025. Fewer clients reported owning additional properties or purchasing alongside partners with established property holdings, suggesting that many buyers may have been navigating the market without inherited or accumulated housing wealth.
Higher borrowing costs, rising transaction expenses and regulatory pressure are all likely to have played a role in discouraging discretionary moves among homeowners and landlords, reinforcing the shift away from investment-led activity.
Despite ongoing government focus on energy efficiency and housing supply, appetite for new-build homes weakened further in 2025. Demand for newly constructed properties has now fallen consistently for several years, indicating that price sensitivity, location and space may be taking precedence over modern specifications for many buyers.
One of the standout findings from the 2025 client data is the growing importance of business-related purchases. Around 43% of transactions were linked to business use, signalling sustained demand for flexible commercial and mixed-use property, even as traditional residential investment softened.
Overseas buyer activity, while still limited, showed signs of stabilising. Non-UK residents accounted for just under 4% of purchases, a modest increase on 2024, though regulatory and economic headwinds likely continued to restrict international investment.
Daniel adds, “Looking ahead to 2026, first-time buyers are likely to remain central to market activity, particularly if rental costs stay high and mortgage rates continue to stabilise.
“At the same time, investment behaviour is expected to keep evolving, shaped by regulatory pressure, energy efficiency requirements and wider economic conditions.
“Together, these forces point towards a market increasingly driven by owner-occupation rather than speculative investment.”