The North East property market is entering 2025 on a wave of change, shaped by shifting legislation, evolving buyer behaviour, and new opportunities across key sectors. Following the far-reaching implications of last year’s budget, our land and property experts share their predictions for how property markets across residential, rural, commercial, and development will adapt, or better yet, thrive, in a new year that presents new challenges and vast opportunities for growth.
Shifting buyer behaviour and Stamp Duty changes in the Residential Market
Lindsay French, Residential Property Partner
“For those planning to upsize, downsize, or improve their homes, 2025 brings a shifting landscape with changing legislation forcing buyers and sellers to move quickly. Stamp duty reform, which comes into play from April 1st, is expected to increase buying costs for some home movers, leading to a race to complete purchases before the March 31st deadline.
"These changes could reshape buyer behaviour throughout the year. Buyers will likely consider stamp duty thresholds when making offers, potentially driving down offer prices and creating more negotiation opportunities. However, with the North East’s average house price just over £190,000, many properties will fall below the £300,000 first-time-buyer threshold, providing relief for local buyers."
Lindsay also predicts that the region will lean further into a buyer's market, building on 2024’s shift from the COVID-era seller’s market.
“Buyers will benefit from more choice and negotiating power, though sellers may face challenges meeting price expectations.”
Legislative impacts and new opportunities in the Rural Sector
Elliot Taylor, Partner
“2025 promises to be a pivotal year for the rural sector, with more detail expected on legislative changes following last Autumn’s Budget. These developments will be a concern for many farming families, particularly the impact on their businesses and Inheritance Tax (IHT) liabilities. Farmers and landowners will need to evaluate their assets and take proactive steps to manage these challenges.
“However, the new year also brings opportunities through infrastructure projects, renewable energy, and environmental initiatives. Increased land transactions and alternative income streams, such as commercial property investments, are expected to gain momentum, supporting farmers and landowners in building resilience against volatile weather, price fluctuations, and policy changes.
“In this uncertain environment, having a clear and well-structured long-term business plan is essential for success. By understanding your financial position and leveraging your assets effectively, you can unlock opportunities for future growth. Despite the challenges, the rural sector remains dynamic and diverse, with its stable agricultural base continuing to play a vital role in supporting the broader economy.”
Sustainability, flexibility and growth define the Commercial Property Market
Lesley Ann Riddles, Commercial Property Partner
“In 2025, we predict the North East’s commercial property market will reflect national trends of adaptability and sustainability.
"Demand for industrial and logistics spaces will remain robust, driven by the region’s growing role in e-commerce and manufacturing," says Lesley Ann.
“Office spaces emphasising flexibility and energy efficiency will dominate, catering to hybrid working models.
“Retail transactions may stabilise, with mixed-use developments gaining popularity. Investors will prioritise properties with green credentials to meet ESG requirements. Despite economic pressures like interest rates and inflation, the North East’s affordability and improved infrastructure will continue to attract domestic and international investors, ensuring steady growth in the commercial sector.”
Development sector growth driven by planning reforms
Richard Garland, Managing Partner
“It’s an old trope but every PM since Thatcher has promised to deliver more nuclear energy and every PM since Edward Heath in 1972 has promised to reform the planning system. A number of the current headline grabbing reforms to the planning system are, in essence, reinstating some of those brought in in 2012.
“Experience tells us that when governments make housing targets compulsory and take the power away from local decisions if they are not met, then that is a time of peak opportunity for clients. Our multidisciplinary team of planning and developments consultants and architects are prepared to help clients capitalise on these opportunities through planning promotion, securing consents, and negotiating the best deals.
Also emphasising the importance of acting early to identify planning opportunities, Richard said: "2025 will be a year to ride the planning wave.”
North East resilience amid national market growth
While national predictions, such as Rightmove’s forecast of a 4% increase in average asking prices, hint at market growth, GFW’s experts believe the North East will remain steadfast across property sectors. The North East’s affordability and unique market dynamics make it well-positioned to weather external pressures in a sector that is brimming with opportunity.
For further insights or to discuss your property goals for 2025, give us a call on 0333 920 2220.
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