Exeter and certain other hotspots in Devon have seen prices surge since the start of the pandemic
House prices in Exeter could continue to soar until at least the end of the year even as prices drop across the country as the stamp duty holiday comes to an end, according to Halifax.
According to the estate agent, house prices across the UK have dropped by 60 per cent on the five-year average in the first week of July as the stamp duty holiday gradually winds down. Under the stamp duty holiday, buyers have not had to pay any stamp duty on the first £500,000 of their purchase price since June 2020.
However, as that came to an end on June 30, house prices have dropped across the country. However, Exeter and certain other hotspots in Devon have bucked the trend, which have seen prices surge since the start of the pandemic.
Roger Wilkinson, owner of Wilkinson Grant & Co, said he saw no reason why the South West’s property boom would come to an end any time soon. The stamp duty holiday winding down has had no impact whatsoever on demand, which continues to outstrip supply. The effect of that is that the supply and demand ratio continues to drive up prices.
How long it will go up for is hard to predict, but certainly through next quarter and even until the end of year, it would be reasonable to expect to see house price growth, he said. Hotspots in particular, where demand is really outstripping supply, prices could continue to rise by as much as 25 per cent, whether that be Salcombe, Shaldon or Topsham.
They have leapfrogged other addresses at other locations in the UK. Places like Bath, Bristol and Gloucester are already up there but there is no reason to think Exeter will not match those prices at some point, he said. People are coming to the South West if they can, so it would not be a surprise to be to see house prices grow even if prices drop around the country a bit.
According to Rightmove, the average house price in Devon is currently £305,185.
That puts it well above the national average of £260,358, according to Halifax.
Property prices in Exeter have rocketed due to a huge surge in demand from people living in big cities like London, as well as regular local demand, resulting in bidding wars.
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