First time buyers dominated the housing market in 2025, according to an analysis of the year’s transactions carried out by conveyancing firm Bird & Co.
The firm’s data for last year revealed 76% of its clients were purchasing their first home, whilst buyers with existing property made up 24% of transactions.
According to Bird & Co partner Daniel Chard, the trend represents a shift in market dynamics.
“In 2025, first-time buyers were no longer a supporting act; they were driving the market,” he said.
“Despite ongoing affordability pressures, many were willing to commit to owner-occupation, likely influenced by rising rents and a desire for long-term stability.”
The conveyancing data also reveals several patterns that shaped buyer behaviour throughout the year.
More than four in five purchases were for a main home, but demand for new-build properties continued to decline – accounting for only 9% of transactions.
“Despite ongoing government focus on energy efficiency and housing supply, appetite for new-build homes weakened further in 2025,” Bird & Co said.
“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.”
A reduction in the number of complex ownership arrangements was another notable trend, Bird & Co said, with the number falling steadily since 2022 when it accounted for 14% of the firm’s transactions. In 2023, complex ownership arrangements accounted for 13% of transactions, in 2024 the figure was down to 11%, and last year they arrangements represented just 9% of the total.
The data also highlights a growing role for business-related property purchases, with around 43% of transactions linked to business use, up from a third in 2022 and 2023. The increase may signal rising demand for live-work spaces, as hybrid working patterns become more established, Bird & Co said.
Overseas buyer activity showed modest signs of stabilising, with non-UK residents accounting for just under 4% of Bird & Co’s purchases – a slight increase on 2024.
The dominance of first-time buyers, combined with high levels of owner-occupation, suggests demand in 2026 is likely to remain driven by people seeking long-term housing stability, Bird & Co said.
“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 and 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.”
