Devon – house prices up almost 30% in 3 years

25 Mar Devon – house prices up almost 30% in 3 years

The average house price in Devon has increased by more than 29% over the last three years, outstripping the rate of increase in London (just over 12%) and across the whole of England (around 25%) in the same period, according to analysis of the latest Land Registry figures by the Experts in Property.

Pre-pandemic, in December 2019, the average house price in Devon was £267,137. This rose by a respectable 3.6% over the course of 2020 to reach £276,735. The last two years however have seen the biggest surge in Devon house prices – by around 13.5% over 2021 to reach an average of £314,098, then another 10% during 2022 with the average house price being recorded at £345,562 in December last year. All in all, representing a three-year increase of just over 29.3%.

Breaking down the figures into types of property reveals a similar pattern. In December 2022, the average price of a detached home in Devon was £523,996, a semi-detached was £349,160 and a terraced home ended the year at £278,430.

The average house price in other regions of the Southwest also significantly increased over the same period – around 34% in Cornwall, 30% across Somerset, nearly 29% in the City of Bristol and around 20% in Dorset.

Robin Tozer, residential manager at the Totnes branch of Rendells, shares his expert opinion on what’s been happening in our local property market. He said: “Traditionally, house prices increase by around 2-3.5% each year, equating to around 25% over the course of a decade, so the increase we’ve had in the last three years is exceptional. Putting aside some of the economic and political factors which may or may not have influenced the market recently, the greatest factor in the last three years is Covid.

“The pandemic caused people to take stock, to think about the future and what’s important in life, and a great number of people have a dream of living by the coast or in the countryside. Covid bought with it the need, and subsequently a normality in working from home and a huge number of people were therefore no longer tied to living near their place of work. So, the onslaught of the pandemic propelled an exodus of people moving out of towns and cities into more rural areas. Demand in those areas increased, which fuelled prices.”

Amid reports of a national market slow-down, Robin predicts that prices in the Southwest are plateauing, that demand is levelling, and that the market is settling to resume to a steady pace as we move further into 2023, particularly with the current downward rate of inflation and the Government’s pledge to end 2023 on a more reasonable inflation rate of 2.9%. The Interest Base Rate is expected to peak at 4.5% in the summer before beginning to ease later on in the year.

He continued: “We’re very much at the tail end of the unusual activity caused by the pandemic, and our market has started settling back into normal rhythm set for the year ahead. We are managing some expectations in pricing, but the local market is buoyant, and we feel positive about 2023 – we are busy with valuation appointments, new instructions and agreeing sales.”

The Experts in Property is the largest network of independent estate agencies in the Southwest, with branches across the region. To discuss your next home move, find your local agency here.