Good news for first-time buyers! More homes were sold in the first quarter of 2025 than in the same period last year, and in major cities, first-time buyers in particular are benefiting from the many rental properties sold by investors
Housing market booms in first quarter
According to recent figures from the Land Registry, almost 51,500 home transactions were registered in the first quarter of 2025. This is a significant increase of 16% compared to the first quarter of 2024. It is striking that this increase is taking place despite the uncertain global economy and declining consumer confidence, factors that normally have a negative effect on the housing market.
First-time buyers dominant in major cities
What is particularly striking in the figures: in the four largest cities (Amsterdam, Rotterdam, The Hague and Utrecht), no less than 62% of all homes sold went to first-time buyers. In total, first-time buyers bought more than 4,800 homes here.
Outside the big cities, the picture is different. There, it was precisely those moving up the housing ladder who bought the most homes. In the areas outside the G4, the share of first-time buyers was 37%, with those moving up the housing ladder buying 17,500 homes compared to 10,200 by first-time buyers.
Why are first-time buyers buying in the city?
First-time buyers continue to benefit from a special trend: former rental homes are ending up on the purchase market in large numbers. In the past quarter, approximately 23,000 households bought their first home - 17% more than in the same quarter of 2024. This number has been rising for five quarters in a row now.
The cause? Investors are relatively often selling their cheaper rental homes, which are then bought up by first-time buyers, especially in the big cities. This offers a unique opportunity for those who have been looking for a first home in an urban area for some time.
Home movers are gaining some ground again
It's not just good news for first-time buyers. Home movers also bought more homes: almost 28,500, which is 15% more than a year earlier. This even allowed home movers to regain a small share of the market, from 53% in the last quarter of 2024 to 55% in the first quarter of 2025.
However, the share of home movers remains historically low. Only during the economic crisis more than ten years ago was their share lower than it is now.
Overbidding stagnates
Interesting for potential buyers: according to recent figures from the housing website Huispedia, buyers bid an average of 4.8% above the asking price of a home in the past quarter. That is about the same as a quarter earlier.
This is striking, because since the beginning of 2023, the average overbidding has increased significantly every quarter. This stagnation started in the fourth quarter of 2024 and is now continuing, which may indicate a stabilization of the market.
What does this mean for you?
Are you a starter looking for your first home? Then this might be the time to explore your opportunities in the big cities. Due to the sale of rental properties by investors, relatively affordable homes are coming onto the market that can be perfect as a first home.
Are you a mover? The current market also offers opportunities for you, now that the overbidding seems to be stabilizing. This could be the right time to take the step to your next home.
Personal advice
At M&D Real Estate we are happy to help you find your way in this dynamic housing market. Whether you are a starter who wants to profit from the sale of rental properties in the city, or a mover who is looking for the perfect next step - we are ready to help you with personal advice.
After reading this article, are you thinking about making your newly purchased home more sustainable? You have also come to the right place for that. Together with our partner https://www.labelbewust.nl we ensure that your new home is not only affordable, but also energy-efficient and future-proof.
Contact us for a no-obligation conversation about the possibilities in your specific situation.