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Ben Stephens, Partner at Stags, comments:
The West Country property market has navigated 2025 with a degree of resilience, despite ongoing economic uncertainty and higher borrowing costs for much of the year. Across Devon, Cornwall, Somerset and Dorset, activity levels were more measured than in the post-pandemic peak, but demand remained broadly consistent, subject to region-specific demand patterns.
House price growth through 2025 was generally modest, with most areas recording low single-digit increases or stable values. Increased levels of supply, combined with more price-sensitive buyers, helped to keep inflation in check. Sellers who priced realistically continued to secure sales, while over-ambitious pricing often resulted in longer marketing periods and negotiated outcomes. There is growing evidence that sellers are adjusting to these conditions, with Rightmove reporting that new seller asking prices fell by 1.8% in November alone.
Stags’ figures showed that sales strengthened significantly in the final quarter of 2025, rising by 18.5% year on year. This uplift reflected improving market sentiment as interest rates began to ease, supported by a Budget that broadly delivered greater stability and reassurance for both buyers and sellers.
Optimism is clearly present in the mortgage market, where product choice has soared. According to What Mortgage, there are now 7,158 options for mortgage deals, some 650 more than this time last year and the highest since 2007. Rates continue to nudge down and with the expectation of further rate cuts it is anticipated that the affordability constraints on borrowers will ease.
Lifestyle-driven demand remained a defining feature of the West Country market. Family houses, period homes and properties offering flexibility for home working proved consistently popular, while the second-home and discretionary buyer sector showed greater caution, particularly in higher-value coastal locations.
As the market moves into 2026, confidence continues to improve. The easing of mortgage rates and greater stability in household finances are expected to support increased transactional activity, particularly among first-time buyers and those trading up the housing ladder. However, affordability remains a key consideration, and buyers are likely to remain selective.
Looking ahead, most commentators expect steady rather than spectacular growth across the region during 2026. The fundamental appeal of the West Country — quality of life, strong employment hubs and limited housing supply in many areas — continues to underpin values. While rapid price inflation appears unlikely in the short term, the outlook is for a balanced and sustainable market, offering opportunities for both buyers and sellers who approach it with realistic expectations.
The early months traditionally bring added momentum, with buyers more focussed and fewer distractions in the market. Sellers who choose to launch early may find themselves well placed to capture the attention of motivated purchasers who were unable to secure the right property in the closing months of 2025.
Contact your local Stags office today to discuss how we can support you in 2026 and beyond.
