Race for space: How the pandemic has driven house price growth in and around Exeter

A number of areas surrounding Exeter have recorded higher house price growth than the city itself since the start of the pandemic, according to the latest research from Halifax.

Since lockdown restrictions first eased last summer, buyer demand has been fuelled in part by a desire for larger properties with more outdoor space, as people’s work-life priorities have shifted during the pandemic.

Across the UK, this has helped to drive faster price growth in areas further from major city centres, where buyers perceive they’ll get better value for money.

Based on analysis of mortgage transactions included in the Halifax House Price Index between March 2020, when the first lockdown restriction were introduced, and June 2021 when the Government’s Stamp Duty holiday began to be unwound, data shows that the city of Exeter saw house price growth of 7.5%.

While this represents strong growth, some areas around Exeter have seen even higher levels of house price inflation, with properties in Teignbridge up by 14.1% on average, while in Mid Devon, the figure is 8.6% for the same period.

Sean May, Halifax mortgage adviser, said:

“The pandemic has had a huge impact on the housing market right across the country and the South West is no exception. While Exeter itself has seen strong house price growth, many of its surrounding areas have witnessed even more exceptional average price rises.”

“It’s clear from the home buyers I’m speaking to that many have prioritised space over location, as a result of more time spent at home over the last year. In an already pricey market, that inevitably leads people to look further afield from city centres, where you tend to get more home for your money.

“We’ve seen evidence of this in areas all around the South West, but local markets in areas around Exeter such as Teignbridge have seen particularly big gains, with double-digit price growth meaning buyers can be paying over £31,000 more than at the start of last year.”