Exmouth vs Dawlish

The comparisons between two coastal towns, from one side of a river to the other, can be quite remarkable, especially if you are looking for capital growth.

Following my feature in the June edition about average property values in Exeter increasing by £227 per week over the last 12 months, a couple visited our office to discuss potentially investing in a property to rent out for the first time.

They were particularly keen for the property to be in one of the coastal towns near Exeter, such as Exmouth or Dawlish. 

When I did some research into these areas I found the average property price in Dawlish is currently £217,118, which is around 3.3% lower than a year ago.  In contrast, the average price in Exmouth is £243,269; this has increased very slightly by 0.04% over the same time.  

If capital growth is what you are looking for then neither town is ideal, considering Exeter has increased by around 4% over the same time, however as Dawlish prices have gone down (possibly due to the recent floods), Exmouth is then the one to go for to protect against a devaluing portfolio. 

It is important to consider the average rents in each area, as well as the initial value of the property, and what you are expecting from your investment. Considering rents in Exmouth have a yield of around 11% higher than Dawlish, this adds to the evidence that Exmouth should be the preferred choice for an investment property.  If you are looking to move to Dawlish, then the benefits of the main train line, lovely beach and Black Swans may be more of a draw.

The property market is dynamic, so it is important to do thorough research before committing.  If you would like to talk to us about buy to let, please feel free to visit our office on South Street.