Exeter faces rising rents and house prices as demand for affordable homes surges

Exeter continues to face significant housing pressures as demand for affordable homes outpaces supply, with rising house prices and rents making it increasingly difficult for many residents to secure suitable accommodation.

According to the Office for National Statistics, the average house price in Exeter was around £283,000 in December 2025. 

At the same time, private rents in the city reached an average of £1,319 per month in January 2026, highlighting the growing affordability challenges for both buyers and renters.

First-time buyers paid an average of £244,000 for homes in the city in late 2025, while properties purchased with a mortgage averaged around £289,000. 

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These figures illustrate the financial barriers many households face when trying to enter the housing market.

Local and regional studies have also pointed to the scale of housing demand in the area. 

The Exeter Housing Market Insights Report produced by Global City Futures found that demand for homes in the city continues to grow, driven by economic expansion, population growth and Exeter’s role as a regional employment and education hub.

The issue extends beyond home ownership. 

The Devon Housing Commission warned in its 2024 report that the county faces an affordability crisis, combined with a shortage of social housing and rising demand for private rented properties. 

The commission recommended increasing the supply of affordable homes and improving planning processes to better meet the needs of local communities.

Further evidence comes from the Exeter Local Housing Needs Assessment commissioned by Exeter City Council together with East Devon, Mid Devon and Teignbridge district councils. 

The assessment provides a detailed picture of the scale and type of housing needed across the wider Exeter area and is used to inform planning and housing policy decisions.

Local authorities say addressing these pressures will require a combination of new housing supply, better use of land and targeted support for specific groups who face particular difficulties accessing housing.

Members of Devon County Council are due to discuss proposals relating to housing provision when cabinet members meet on Wednesday 11 March. 

The council has said it is exploring ways to use its assets to help address housing shortages.

Councillor Julian Brazil, leader of the council, said the authority is looking at how land and resources can be used to support people most in need of accommodation.

“This decision is about using council land in a way that supports people who need housing the most,” he said. 

“By prioritising care leaver housing, key worker accommodation including for teachers and nurses, and affordable homes, we are aligning our assets with our wider responsibilities and strategic priorities.”

Housing for care leavers and key workers has become an increasing focus for councils across the country as high housing costs affect recruitment and retention in essential public sector roles.

Nationally, the government has set a target of building 300,000 homes a year in an attempt to address the housing shortage, although analysts have warned that delivery continues to fall short of demand in many areas.

In Exeter, housing policy and development decisions are guided by local evidence and planning strategies designed to ensure that future growth reflects the needs of the city’s population. 

However, reports from housing bodies and local authorities suggest that addressing affordability and availability will remain a major challenge in the years ahead.