This was a report by Savills in the paper yesterday about Devon prices. The final paragraph explains a lot. A case of supply and demand.
^House prices in the South West are expected to grow by 13.1 per cent over the next five years – with coastal areas seeing the strongest increases, according to new research bySavills.
The predicted figures show that the average cost of a home in the region will to rise from the current average of £341,971 to £386,769 by 2026.
The price of a home at the higher end of the market, known as the prime market – broadly the top five to 10 per cent by value – will increase by an average of 19.3 per cent over the five-year period outside of London.
While there will be less urgency in the market next year, demand for property in popular Devon towns and villages looks set to keep rising.
The demand for property for sale in Devon is still incredibly strong and, given the comparative lack of supply, alongside relatively low unemployment and a robust economy, we are anticipating a strong market next year with healthy price growth of 3.5 per cent on average.
The coastal market has experienced a huge gap in supply and demand which has resulted in average annual growth of 14.8 per cent. With no sign that the supply issue will resolve, and with the level of unfulfilled demand I am seeing, I would expect the prime coastal markets to see the strongest growth, which could well exceed the county average of four per cent.
Devon has seen a significant rise in popularity over the last five years and experienced a particularly notable surge on the back of the lifestyle changes that resulted from the pandemic.^