The Future of Property in the South West

Future of Property in South West England & South Wales: Trends, Predictions & Expert Insights.

The South West is one of the most popular regions in England for homebuyers. It's also an area with some of the highest house prices in the country, making it an appealing place for buyers looking to invest in property.

What do we know about the South West's property market?

The South West has an estimated population of 3.2 million people and a total of 1.8 million households. The region has experienced strong economic growth over recent years, which has driven demand for new homes and commercial property developments.

The economy of Devon, the largest county in the region, stands out as one of the most stable in England. Its unemployment rate is lower than both the South West and Great Britain as a whole. Moreover, the county boasts considerably fewer workless households compared to the South West and Britain. This favourable economic landscape makes Devon an ideal destination for businesses seeking growth opportunities within this area.

What are the trends in the South West property market?

The South West region of England and Wales has been experiencing remarkable growth in house prices, making it one of the most rapidly developing areas in the country. The evidence of this impressive growth becomes apparent when we carefully examine the yearly average nominal house prices, which have been adjusted for inflation. In the year 2000, nominal house prices in the South West Region were approximately £216k, and by 2023, they have surged to £362k. This remarkable increase highlights the substantial growth and appreciation in the region's property market over the span of these years.

South West property market thrives despite economic challenges.

Despite facing additional increases in interest rates and worries about the cost of living, the market continues to thrive. The demand for properties is on the rise, evidenced by the steady growth in the number of new sales agreed and an increase in available housing stock.

The stock of available homes for sale is still on the rise, showing a significant increase of 66% compared to last year. Additionally, the sales of high-end properties have remained resilient. The percentage of sales for homes priced over £1 million is slightly higher than the previous year, climbing from 2.7% to 3.4% in the period up to April.

Will house prices continue to rise in the South West?

According to Rightmove, in the past year house prices in the  South West were 11% up on the year before and 18% up in 2020 when they averaged at £319,976.

Savills also predicts that the base rate will reach 4% in early 2023 and maintain this level until mid-2024, after which it is expected to decline.

How will Acorn’s property development efforts within the South West fare in the future?

In Savills' recent analysis of Acorn Property Group's track record, ongoing development projects, and the demographic insights from Experian data, they have stated that they believe   “Acorn is strongly positioned to navigate the current market conditions and potentially surpass broader market performance”. Savill’s also said that Acorn's developments strategically reside in areas that draw in more financially stable "in-movers," a demographic less susceptible to housing affordability challenges, along with downsizers and cash buyers. This particular buyer profile instils a sense of confidence in Acorn's ability to maintain robust sales figures. Additionally, the properties are situated in markets that have historically grappled with a shortage of supply, resulting in substantial pent-up demand and new-build developments are set to attain an EPC rating of B or higher by the conclusion of summer 2023. This commitment to energy efficiency enhances the appeal of Acorn’s homes and aligns with contemporary sustainability standards.

The promising and intriguing future of property in the South West.

A comprehensive analysis of the South West's property market is vital to gain valuable insights into the future of our homes and neighbourhoods. Fortunately, the trends are quite discernible and armed with the data and knowledge presented in this overview, Acorn Property Group is excited to continue building places that people love to live and work in for the foreseeable future.

YOUR CAPITAL IS AT RISK IF YOU INVEST 

Investment opportunities available via Acorn Property Invest are exclusively targeted at exempt investors who are experienced, knowledgeable and sophisticated enough to sufficiently understand the risks involved, and who are able to make their own decisions about the suitability of those investment opportunities. All investors should seek independent professional investment and tax advice before deciding to invest. Any historic performance of investment opportunities is NOT a guide or guarantee of future performance and any projections of future performance are not guaranteed. All investment opportunities available via Acorn Property Invest are NOT regulated by the Financial Conduct Authority (FCA) and you will NOT have access to the Financial Services Compensation Scheme (FSCS) and may not have access to the Financial Ombudsman Service (FOS).