2025 felt like a year where the headlines got inside everyone’s head.
The theme was simple: sentiment was worse than reality.
The news cycle, social media, and constant speculation created a mood of doom and gloom that made people hesitant to move, even when the fundamentals didn’t support the fear. We saw a strong start to the year with early activity, followed by a prolonged period where buyers, sellers, and landlords were mostly waiting… watching… and second-guessing.
The noise that drove the hesitation
There were three big themes that put people into “pause mode”:
1) Legislation uncertainty (Renters’ Rights Bill)
For landlords especially, the constant discussion about reforms created uncertainty around tenancies, possession, rent reviews, and what the future rules would actually look like in practice.
2) Stamp duty and tax speculation
Changes and rumours tend to trigger one of two reactions: rush decisions or no decisions. We saw both, early urgency, then a long stretch where many people simply didn’t want to commit.
3) Budget fear that didn’t match reality
The build-up was worse than the outcome. For months, people expected the worst. When the budget dust settled, it became clear it wasn’t anywhere near as damaging as people feared and that’s when confidence started to return.
The reality: prices still rose, and opportunities were everywhere
Despite all the hesitation, house prices still rose nationally by over 2%, and Newcastle outperformed again at over 4% growth.
That’s the interesting part of 2025: the market didn’t collapse. It simply moved slower and the people who stayed active often came out strongest.
For investors, 2025 created a window where deals were more achievable than in a hotter market. A chunk of landlords wanted to offload stock due to uncertainty, which meant better discounts and more negotiating power for the buyers who were ready to move.
What we’re seeing going into 2026
The difference right now is confidence.
- Mortgage rates are dropping
- The budget aftermath has brought clarity
- People are moving again rather than waiting
- January is expected to bring a mini-boom of new listings in Newcastle
We’ve had two years of slow growth since the mini-boom in 2022, and with supply still not meeting demand, the market doesn’t need much of a spark for activity to pick up.
A quick Bowson note
2025 was also a year of growth for us on the sales side and on average, we achieved 101% of asking price across all completed sales.
That’s not luck. That’s pricing strategy, presentation, negotiation, and getting the right eyes on a property at the right moment.
From all of us at Bowson – Happy New Year.
If 2025 taught us anything, it’s this: ignore the noise, focus on the fundamentals, and make decisions based on reality.