The Exeter Property Sales Market

I have spoken to a large number of landlords, investors and first time buyers recently, who have been asking about the Exeter property market.

With all the headlines about property values in the UK, should we be worried about a new price crash or explosion? The economy seems to be looking a lot healthier and there are signs we are seeing a real recovery after several false starts.

I believe that, over the last few years, mortgages have been a little more difficult to obtain than during the 2000’s and this lack of mortgages has produced some pent up demand for property. Now we appear to be on the other side of the financial crisis and the banks are more willing to lend and this is why sales, prices and first-time buyer numbers have improved so rapidly.

Property values in Exeter have risen, on average by around 5.7% in the last 12 months. When I look at Devon as a whole, prices have risen by around 7.2% and nationally by around 8.7%. Comparing this rate of increase with the 30-40% yearly increases in the boom years of 2000 to 2004, I cannot see why some are concerned about an unsustainable price boom.

So, in general now is a good time to buy, however it does depend on how long you plan to own the property (whether as a home or investment), whether it personally suits you and most importantly whether you can afford it. Exeter first time buyers preparing to take the plunge should bear these factors in mind. The biggest issue must be for buyers to ensure they can take the hit of future interest rate rises.

Landlords tend to buy for the long term, so these short term movements do not tend to affect them as much. The lack of supply in Exeter of new properties coming onto the market indicates people wanting to buy have to move quickly, and don’t have the luxury of a few weeks to decide to view the property. However, my findings show that first time buyers and landlords in Exeter aren’t prepared to pay over the odds for a property to secure it. Perhaps the memory of the 2008 price crash has given a dose of realism to the optimistic Exeter property market?