South West new homes market updates
Monthly updates on the South West housing market, covering new homes, planning activity and house price trends across Devon, Cornwall, Dorset and Somerset.
South West New Homes Market Update (Devon, Cornwall, Dorset & Somerset) – 13 April 2026
The South West new homes market has remained steady through the past month, with pricing broadly stable and buyer demand continuing at a more selective pace than the peaks seen in previous years. Across Devon, Cornwall, Dorset and Somerset, planning activity remains focused on local plan progression, land supply evidence and responses to wider national planning reform. Mortgage affordability remains a key influence on buyer behaviour, but committed purchasers are still transacting where pricing is realistic.
Market Overview
UK house price growth strengthened modestly in March, with Nationwide reporting annual growth of 2.2% and average prices at £277,186, suggesting the market regained some momentum during Q1. However, lenders and analysts continue to note that affordability pressures remain a constraint on wider activity.
Zoopla’s latest House Price Index shows annual UK price growth of 1.3%, with buyer demand softening slightly as mortgage rates edged higher and fewer sub-4% mortgage products remained available. The portal notes that committed buyers are still active, but are increasingly price sensitive.
In the South West, Land Registry data continues to show flatter annual price movement than many northern regions, reflecting the more affordability-constrained nature of southern housing markets. Average South West values remain broadly stable year-on-year at around £302,000.
Regional Highlights
Devon
Planning activity in Devon continues to centre on site-level applications and ongoing local authority land supply work, with several district authorities continuing to review housing delivery and five-year supply positions as national planning reforms progress. West Devon’s latest provisional data shows annual house price growth ahead of the wider South West average, indicating continued resilience in parts of the county.
Cornwall
Cornwall Council has published further updates on national planning reform implications, including its response to Government consultation on future strategic planning geographies and wider planning policy changes. This reflects ongoing strategic review work likely to influence future Cornwall housing market and development policy decisions.
Dorset
Across Dorset, planning committees continue to consider strategic and medium-scale housing applications while authorities maintain focus on housing delivery and land supply performance. Dorset remains one of the more constrained South West markets, with pricing sensitivity still affecting the absorption of higher-value new homes.
Somerset
Somerset Council continues progressing the Somerset Local Plan 2045, with Regulation 18 consultation scheduled for April 2026. This remains a significant milestone for Somerset housing development, with the emerging plan set to shape strategic growth and site allocations across the county.
Planning, Land and Development Signals
Plan-making and strategic planning reform remain major themes across the South West. Local authorities are continuing to assess housing requirements, land supply evidence and the implications of wider Government planning changes, particularly around strategic planning structures and spatial development strategies.
The progression of the Somerset Local Plan and Cornwall’s engagement with strategic planning reform are notable regional signals, with both likely to influence future site promotion and housing allocation discussions over the coming year.
More broadly, the South West development market continues to see active planning applications across the region, although decision-making remains heavily influenced by infrastructure constraints, nutrient neutrality considerations in some areas, and viability scrutiny.
Buyer Behaviour and Pricing Trends
Buyer demand in the South West housing market remains present but measured. National agents and lenders continue to report that purchasers are active where homes are correctly priced, but affordability remains a constraint on discretionary movers and first-time buyers.
The current mortgage environment is creating a more value-conscious buyer profile, with purchasers scrutinising specification, incentives and overall affordability more carefully than in stronger post-pandemic market conditions. Zoopla notes that pricing realism remains critical as buyers have become more selective.
For the new homes South West market specifically, this continues to support a trading environment where well-positioned schemes can perform steadily, but premium pricing without clear differentiation is meeting greater resistance.
Regional new homes summary
Overall, the South West new build housing market remains stable but price-sensitive. House prices across the wider region are broadly flat to modestly positive, buyer demand remains selective rather than expansive, and local authorities across Devon, Cornwall, Dorset and Somerset continue progressing strategic planning and land supply work that will shape future housing delivery.
South West New Homes Market Briefing – 23rd March 2026
The South West new homes market has remained steady over the past fortnight, with pricing broadly flat and sentiment cautiously improving. National data points to modest growth supported by better mortgage availability, while locally the focus continues to sit firmly on plan‑making, land supply and appeals activity. Across Devon, Cornwall, Dorset and Somerset, there is a consistent theme of policy progression rather than major shifts in delivery.
Market Overview
The latest national indices continue to show a stable housing market. Nationwide reports house prices rising by 0.3% month‑on‑month in February, with annual growth holding at around 1%, indicating a market that has regained some momentum after a subdued end to 2025.
Zoopla’s most recent data places the average UK house price at approximately £269,900, with annual growth of 1.3%. This remains modest and reflects ongoing affordability constraints, particularly across southern regions such as the South West.
ONS figures show UK house prices increasing by around 2.4% annually to the end of 2025, although this represents a slight slowdown compared with previous months. The overall direction is positive, but without strong upward pressure.
Mortgage conditions continue to improve gradually. Lower rates compared with 2024 and increased lender flexibility are supporting demand, although economic uncertainty still clouds the outlook for further interest rate reductions.
Regional Highlights
Devon:
Local market commentary indicates a more active start to 2026, with improved mortgage availability supporting buyer confidence. Planning activity remains centred on Local Plan progression and site-level decisions, with ongoing work to balance housing delivery against environmental and infrastructure constraints.
Cornwall:
Cornwall continues to focus on planning policy updates and consultation activity linked to wider national reforms. The direction of travel remains tied to how national planning changes will influence future housing allocations and decision-making across the county.
Somerset:
Somerset’s Local Plan process remains a key focus, with a significant number of submitted sites still under review following the Call for Sites exercise. This evidence-gathering stage will inform future allocations and consultation stages later in the plan process.
Planning, Land and Development Signals
Across the region, plan-making remains the dominant signal. Somerset’s extensive Call for Sites pipeline and Cornwall’s ongoing policy updates point to a continued emphasis on identifying and evidencing future housing land supply.
In Devon, the combination of Local Plan work and site-level decision-making reflects the ongoing pressure to maintain deliverable housing pipelines, particularly in areas where land supply positions are under scrutiny.
Overall, there is little evidence of a surge in new permissions over the last fortnight. Instead, the focus remains on the earlier stages of the development cycle, including site promotion, evidence gathering and policy consultation.
Buyer Behaviour and Pricing Trends
Buyer demand has shown signs of stabilising after a quieter period, with early‑year activity supported by improved mortgage rates and a wider choice of homes on the market. This has helped maintain transaction levels without driving significant price growth.
Pricing trends remain subdued across southern England. The South West continues to reflect this pattern, where affordability constraints limit the pace of growth and lead to a more balanced market between buyers and sellers.
Overall, the market is characterised by small monthly price movements, steady demand and a gradual adjustment to current borrowing conditions rather than any sharp upward or downward shift.
Regional new homes summary
Over the last two weeks, the South West new homes market has remained stable, with modest national price growth and improving buyer confidence providing a supportive backdrop. Across Devon, Cornwall and Somerset in particular, planning policy work and land supply assessment continue to shape the future pipeline, while pricing and demand trends suggest a steady, balanced market rather than rapid change.
South West New Homes Market Briefing – 9th March 2026
The South West new homes market has entered March with a broadly steady tone. National data suggests modest house price growth and improving buyer confidence after a quieter end to 2025. Across Devon, Cornwall, Dorset and Somerset, the last fortnight has been shaped more by plan‑making activity, housing land supply discussions and emerging planning appeals than by major scheme announcements.
Market Overview
National house price indicators continue to show small but positive movement. The Nationwide House Price Index reported prices rising by 0.3% month‑on‑month in February, with annual growth holding at around 1%. This suggests the housing market has stabilised after the volatility seen during late 2025.
Halifax data shows a similar picture, with prices also increasing by around 0.3% in February and annual growth reaching roughly 1.3%. The average UK property value has now passed the £300,000 mark according to Halifax’s measure.
Zoopla’s latest figures place the average UK house price at around £269,900, up roughly 1.3% year‑on‑year. Growth remains modest, reflecting a market adjusting to higher borrowing costs and affordability constraints.
The wider economic backdrop remains important for housing. Inflation trends and geopolitical pressures have created uncertainty around the timing of potential Bank of England interest rate cuts, which could influence mortgage pricing and buyer confidence through 2026.
Regional Highlights
Devon
Planning activity continues to shape development prospects across Devon. Recent discussions around Local Plan work in parts of the county highlight the ongoing challenge of identifying sufficient housing land to meet future needs while balancing environmental and infrastructure considerations. Local appeals and plan consultations remain an important mechanism in progressing sites.
Cornwall
Cornwall Council continues to update planning guidance and policy consultation work linked to national planning reforms. Updates relating to planning appeals and wider national planning policy consultation are currently being circulated, reflecting how forthcoming changes to the National Planning Policy Framework may influence development decisions in the county.
Dorset
Planning work across Dorset continues to focus on long‑term Local Plan preparation and site assessments. While there have been fewer headline planning decisions in the past fortnight, the plan‑making process remains central to identifying housing allocations and managing development pressure in the county’s towns and rural settlements.
Somerset
Somerset’s emerging Local Plan process continues to gather evidence on potential housing land. More than 1,600 sites submitted through the council’s Call for Sites exercise are being assessed as part of the plan‑making process, with consultations expected later in the year to narrow down potential allocations.
Planning, Land and Development Signals
Across the South West, the most significant signals continue to come from plan‑making and housing land supply discussions rather than major new scheme approvals.
Somerset’s large volume of submitted sites highlights the scale of land being considered for potential development through the Local Plan process. The filtering and assessment of these locations will shape where new housing growth is directed across the county over the next planning period.
Meanwhile, national consultation on planning reforms, including updates linked to the National Planning Policy Framework and planning appeal procedures, is ongoing. These changes will influence how local authorities and inspectors weigh housing need, design and land supply considerations in planning decisions across the region.
Buyer Behaviour and Pricing Trends
Buyer activity has shown signs of improvement at the start of 2026, supported by greater mortgage availability and rates that are lower than those seen through much of 2024 and early 2025. Increased supply of homes coming to market has also helped stimulate activity.
Despite this improvement, price growth remains modest across much of southern England, including the South West. High values relative to local incomes continue to place limits on the pace of price increases and transaction volumes.
The overall direction of the market therefore appears stable rather than strongly upward, with small monthly price changes and a steady flow of transactions indicating a housing market gradually adjusting to the current interest rate environment.
Regional new homes summary
Over the past fortnight the South West new homes market has remained steady, supported by modest national house price growth and improving buyer activity. Planning policy work and Local Plan preparation across Devon, Cornwall, Dorset and Somerset continue to shape the future land supply picture, while broader economic conditions, particularly mortgage rates and inflation expectations, remain key influences on market momentum.
South West New Homes Market Briefing – 23rd February 2026
Over the last fortnight the South West’s new‑build housing scene has been shaped by a steady national market backdrop and emerging local planning activity. Broad UK house price data show modest annual growth and a softer month‑on‑month picture after early‑year asking‑price gains. On the ground in Devon, Cornwall, Dorset and Somerset, planning processes continue with Local Plan work, site appeals and community consultation shaping development prospects.
Market Overview
Recent national indices indicate that UK house prices are still rising, but slowly. Zoopla’s latest House Price Index shows the average UK price up about 1.2% over 2025 to around £269,800, with the South West recording a small fall of about 0.1% over the same period, underscoring a relatively flat price picture in the region compared with stronger gains elsewhere.
Asking‑price trends from Rightmove highlight a record monthly jump in January 2026, with average new seller asking prices rising by 2.8% compared with December, driven by higher buyer confidence early in the year. February figures show prices broadly flat on the month, suggesting the early‑year momentum has levelled off.
Market commentary points to falling mortgage rates helping affordability, with average two‑year fixes now noticeably below levels seen a year ago, supporting buyer confidence even as annual price growth remains modest.
ONS data confirm UK house prices rose around 2.4% annually to December 2025, reinforcing a picture of subdued but positive growth nationally, though month‑on‑month movements were mixed and some regions including the South West saw larger short‑term declines.
Regional Highlights
Devon:
Local development news includes progress on smaller build projects, such as the start of construction on a 26‑home bungalow scheme in East‑the‑Water, Bideford, following planning approval. This highlights ongoing delivery of modest‑scale residential work in community settings.
A planning appeal has been lodged against a council refusal for 65 homes at a site in Dunkeswell, with the case expected before a Government planning inspector this year, reflecting contested local decisions in a context where housing land supply remains a key consideration.
Torbay’s draft Local Plan consultation, which proposes around 8,000 new homes over 20 years, has been extended to give more time for views amid ongoing housing discussion, indicating sustained plan‑making focus.
Cornwall:
Cornwall Council’s Call for Sites remains open through 2026, inviting suggestions of land that may be suitable for housing and other uses to inform its emerging Local Plan. This early‑stage process is central to shaping future allocations.
Dorset:
No standout new planning headlines over the past fortnight were identified via authoritative planning sources, though ongoing Local Plan preparation and site assessments continue as part of standard policy work.
Somerset:
Somerset continues assessment of sites submitted through its Local Plan Call for Sites, with reports expected later this year that will feed into housing evidence and future consultations. This reflects progress in evidence gathering for longer‑term spatial planning.
Planning, Land and Development Signals
Across the four counties, Local Plan exercises dominate planning signals. Calls for Sites in Cornwall and the continuing assessment in Somerset show active efforts to identify land to meet housing needs under new housing targets and policy directives.
In Devon, the appeal of a recently refused 65‑home proposal underscores ongoing planning tensions and the role of housing land supply considerations in decision‑making. Meanwhile, draft Local Plan work in Torbay continues to frame residential development over the next two decades.
Development at the community scale continues to move ahead in places with detailed permissions, such as the small‑scale bungalow project in Bideford, illustrating that planning and delivery stages operate concurrently at different scales.
Buyer Behaviour and Pricing Trends
National buyer sentiment early in 2026 showed some improvement, particularly around January when asking prices jumped and demand measures rose sharply compared with seasonal norms. This suggests that confidence among buyers and sellers was healthy at the start of the year before moderating later in February.
Broader price indices confirm that annual house price inflation remains modest, with UK averages up over the year but smaller movements in the South West, where annual increases have been subdued and month‑to‑month dynamics relatively flat.
Lower borrowing costs due to easing mortgage rates appear to be supporting affordability, potentially underpinning ongoing demand even as overall market momentum stabilises.
Regional new homes summary
The past 14 days have seen a mixed picture for South West new homes. National price trends remain modestly positive, with early‑year asking‑price uplift giving way to flatter movements. Local planning processes are active across Devon, Cornwall and Somerset, with Calls for Sites and draft plans progressing, while contested planning decisions and smaller build schemes illustrate development dynamics on the ground. Together, these data points suggest a steady residential market with ongoing planning momentum and measured price movement in the region.
South West New Homes Market Briefing – 26th January 2026
Over the last fortnight, the South West new homes market has shown a mix of subdued pricing signals and seasonal activity, with planning policy processes continuing across Devon, Cornwall, Dorset and Somerset. National indices point to slower annual price growth but stronger short‑term listing activity in January, while local planning frameworks continue to evolve with Calls for Sites and Local Plan evidence gathering underway.
Market Overview
Nationally, UK house price growth ended 2025 on a softer footing. Nationwide reported annual growth of 0.6% in December 2025, down from 1.8% in November, with a 0.4% monthly price fall, marking the weakest annual growth since April 2024. (Source: Nationwide House Price Index, Jan 2026)
More recent listing data from Rightmove shows a seasonal uplift in asking prices, with the average UK asking price rising 2.8% month‑on‑month in January 2026, the largest January increase on record, driven by renewed post‑Christmas seller and buyer activity. (Source: Rightmove House Price Index, Jan 2026)
ONS data published in January 2026 shows average house prices in England rising 2.2% year‑on‑year to November 2025, with modest growth continuing across the UK, reinforcing the picture of low but positive annual price movement. (Source: ONS UK House Price Index, Jan 2026)
Broader macroeconomic conditions remain supportive but cautious. The Bank of England’s December base rate cut and falling mortgage rates have eased affordability pressures, while forecasts from major lenders suggest modest national price growth in 2026 if borrowing costs continue to stabilise. (Source: Nationwide Outlook 2026)
Regional Highlights
Devon:
No material Local Plan milestones were reported in the last fortnight, but ongoing strategic planning activity continues across authorities such as East Devon and Teignbridge as they prepare updates to spatial strategies and housing evidence bases.
Cornwall:
Cornwall Council is currently inviting land suggestions through its Call for Sites process to inform the next Local Plan, seeking land for housing and infrastructure allocations to shape future growth patterns. (Source: Cornwall Council Planning Policy Call for Sites, Jan 2026)
Dorset:
No new Local Plan adoption milestones were identified in the last two weeks, though Dorset Council continues longer‑running Local Plan preparation and site identification processes to support housing delivery across the unitary area.
Somerset:
Somerset Council’s Local Plan process remains at the evidence‑gathering stage following its Call for Sites exercise, with submitted land now being assessed as part of the Housing and Economic Land Availability Assessment (HELAA). (Source: Somerset Council Local Plan Call for Sites information)
Planning, Land and Development Signals
Across the South West, Local Plan preparation and land identification remain the dominant strategic signals. Cornwall and Somerset are actively using Calls for Sites and HELAA processes to identify potential housing land, which will inform future allocations and housing targets. These processes indicate continued pipeline development rather than immediate allocation decisions.
Devon and Dorset remain in transitional phases with Local Plan updates and housing evidence work progressing, but without major statutory milestones reported in the last fortnight. This reflects a broader pattern of incremental plan‑making rather than rapid policy shifts across the region.
Overall, the planning environment remains active but evolutionary, with authorities focused on evidence gathering, site assessment and policy framework preparation.
Buyer Behaviour and Pricing Trends
Recent national indices suggest a market characterised by low annual growth but short‑term seasonal momentum. Nationwide’s December data indicates a cooling trend through late 2025, while Rightmove’s January figures highlight renewed seller confidence and buyer engagement at the start of 2026. (Source: Nationwide; Rightmove)
Affordability pressures have eased slightly as mortgage rates have fallen and earnings growth has outpaced house price growth in recent periods, supporting transaction volumes and first‑time buyer activity nationally. (Source: Nationwide Outlook 2026)
In the South West, available data continues to suggest modest annual price growth broadly in line with national trends, with no evidence of significant divergence over the period, reinforcing a broadly stable but cautious regional market.
Regional New Homes Summary
Over the last two weeks, the South West new homes market has shown steady underlying activity, with muted annual price growth and a seasonal uplift in listing prices. Planning and land supply processes continue to progress across Cornwall and Somerset, with Devon and Dorset maintaining ongoing Local Plan and evidence‑base work. Overall, the period reflects incremental planning progress and a cautious but functioning residential development market across the region.
South West New Homes Market Briefing – 12th January 2026
Over the last fortnight, the new homes market in the South West has maintained a subdued but stable profile against a backdrop of slowing national price growth and ongoing planning activity. Broad UK house price indices show low annual gains and some recent monthly declines, while region‑specific activity continues at a steady pace, especially around planning and smaller site proposals in Devon, Somerset and Dorset.
Market Overview
Latest official figures show that average UK house prices increased modestly on an annual basis, with provisional estimates up 1.7% to £270,000 in the year to October 2025, but growth has eased compared with earlier months. Private rents also continued to moderate, with annual rent inflation at 4.4%, the lowest in several years. (Source: ONS Private rent and house prices, Dec 2025)
Separate monthly indices from Halifax indicate that UK house prices fell to their lowest levels since mid‑2025, with a 0.6% monthly decline and annual growth slowing sharply, reflecting wider uncertainty in the market. (Source: Halifax UK house prices)
Regionally, data through late 2025 show the South West with slightly positive annual house price change around 0.9%, but also a small monthly decline, underscoring a local market that mirrors the muted national trend. (Source: UK HPI — average South West price)
There have been no major UK policy shifts directly targeted at housing supply in this fortnight, but broader macroeconomic signals — including Bank of England interest rate adjustments — continue to shape mortgage cost expectations and buyer sentiment.
Regional Highlights
Devon:
Proposals for a significant new settlement near Exeter Airport – a planned community of up to 8,000 homes — have resurfaced in national reporting, highlighting long‑term expansion prospects in East Devon and linking housing delivery to major local employment zones. (Source: The Sun reporting on Marlcombe plan / Wikipedia context)
Somerset:
A local development has moved forward in Somerset with plans for 100 affordable homes in a partnership between a housebuilder and a housing association in a village setting, reflecting ongoing smaller‑scale delivery in rural parts of the county. (Source: InsiderMedia Somerset development)
Cornwall:
No new formal Local Plan milestones or housing land supply statements were reported over the last 14 days, but larger strategic schemes such as long‑term garden village planned communities continue to form part of the regional housing backdrop. (Context: Langarth Garden Village plans)
Dorset:
News over this period did not include updated Local Plan decisions or five‑year housing land statements, but housing delivery discussions and planning activity remain a consistent theme in authority forums and local reporting. (General planning context)
Planning, Land and Development Signals
Across the South West, plan‑making and site allocation processes remain in varied stages rather than reaching decisive conclusions in the latest fortnight. In Devon, large new town proposals illustrate the scale of strategic housing ambitions, while in Somerset small site proposals advance through reserved matters planning, underscoring the diversity of delivery types. In Cornwall and Dorset, major Local Plan developments and housing land supply discussions continue in the background, maintaining the forward pipeline without dramatic developments this period.
These signals reflect an ongoing, multi‑layered planning landscape where long‑range spatial strategies coexist with more incremental housing delivery pathways across the counties.
Buyer Behaviour and Pricing Trends
Nationally, headline price data point to a slower market, with both annual growth and month‑to‑month movement softening through late 2025. Halifax commentary frames the current environment as more cautious, with modest expectations for 2026 price improvement tied to lower mortgage rates and supportive lending conditions, though overall momentum remains muted. (Source: Halifax UK house prices)
Within the South West, provisional HPI figures suggest that annual growth in prices remains positive but low, with some recent monthly declines. Transaction volumes also show signs of contraction compared with previous years in broader regional metrics, pointing to a measured buyer response. (Source: UK HPI regional data / Plumplot)
Buyers in the region continue to contend with affordability pressures, as broader housing income ratios in the South West remain high relative to earnings, a pattern reflected in longer‑term affordability studies, although shorter‑term behaviour signals have been stable recently.
Regional New Homes Summary
Over this fortnight, the South West new homes market has shown a steady but unspectacular pattern. National data confirm a moderation in price growth and softer monthly movements, mirrored in the region’s statistics. Planning and delivery signals continue through a mix of larger conceptual proposals and smaller local site progress, with no abrupt shifts but ongoing activity across Devon, Somerset and neighbouring counties.
South West New Homes Market Briefing – 29th December 2025
The South West new homes market closed out the year with steady sales activity at a national level, modest price movement and continued focus on planning policy and land supply. Across Devon, Cornwall, Dorset and Somerset, market conditions remain measured, with buyer demand present but price growth subdued and Local Plan processes playing a key role in shaping future delivery.
Overall sentiment remains cautious but stable, with planning consultations, housing land supply positions and emerging policy frameworks setting the context for new-build development heading into 2026.
Market Overview
National indices continue to point to a stable housing market with limited price inflation. Zoopla’s December House Price Index reports that UK housing transactions are on track for around 1.2 million sales in 2025, the highest annual level for three years, supported by steady mortgage availability and household income growth (Source: Zoopla House Price Index, December 2025).
Average UK house prices are estimated at around £270,300, representing annual growth of approximately 1.1%, although momentum has slowed compared to earlier in the year (Source: Zoopla / Hometrack, December 2025). Official Land Registry data shows marginal year-on-year increases alongside small monthly declines, reflecting typical seasonal softening (Source: UK House Price Index, Land Registry).
In the South West, new-build prices have remained broadly flat over the past 12 months. Average values for newly built homes sit at approximately £381,000, with most transactions concentrated in the £300,000–£400,000 range and a slight nominal decline compared to the previous year (Source: UK House Price Index, new-build data).
The wider economic backdrop remains supportive but restrained. Inflation continues to ease, mortgage rates have stabilised at lower levels than earlier in the cycle and forward-looking commentary points to modest price growth nationally in 2026 rather than a sharp rebound (Source: Zoopla market commentary, December 2025).
Regional Highlights
Devon:
East Devon District Council’s Second Regulation 19 consultation on the Emerging Local Plan remains open until late January 2026. This consultation represents the final formal stage before submission, setting out the district’s approach to housing, employment and infrastructure delivery through to 2042 (Source: East Devon District Council – Emerging Local Plan).
The plan includes proposals for strategic growth locations and confirms the spatial framework that will guide residential development across East Devon over the coming years.
Cornwall:
Planning activity in Cornwall continues to centre on preparation of the Cornwall Local Plan 2050. Consultation activity and engagement events remain ongoing following the launch of the draft framework earlier in November, with housing delivery, infrastructure and environmental priorities forming key themes (Source: Cornwall Council – Local Plan 2050).
The most recent Five-Year Housing Land Supply Statement confirms an annual housing requirement of 4,421 homes per year and identifies a land supply of approximately 3.9 years, highlighting continued pressure to identify and deliver additional sites across the county (Source: Cornwall Council – Housing Land Supply Statement 2025).
Dorset:
Dorset Council continues to work through responses to its Local Plan Options Consultation, which closed earlier in the autumn. Technical evidence and background papers are now informing the next draft stage of the plan, including housing numbers, settlement strategy and site selection (Source: Dorset Council – Local Plan Options Consultation).
The council’s most recent Five-Year Housing Land Supply position indicates that Dorset is currently unable to demonstrate a full five-year supply, a factor that remains relevant in planning decisions while the new Local Plan is progressed (Source: Dorset Council – Housing Land Supply Statement, October 2025).
Somerset:
Somerset Council is continuing work on the Somerset Local Plan 2045, with the authority currently in the evidence-gathering phase. Key studies, including the Local Housing Needs Assessment and Gypsy and Traveller Accommodation Assessment, are expected to be published ahead of future consultation stages (Source: Somerset Council – Local Plan Evidence Base).
Recent activity in the county has also highlighted town-centre and brownfield regeneration opportunities, reinforcing the role of redevelopment alongside greenfield delivery in Somerset’s housing pipeline (Source: local planning and regeneration updates).
Planning, Land and Development Signals
Across the South West, Local Plan preparation and land supply assessments remain the dominant influences on the new-build landscape. East Devon’s Regulation 19 consultation represents a near-final position on future housing distribution, while Cornwall’s updated housing requirement continues to drive the search for additional deliverable sites (Source: East Devon District Council; Cornwall Council).
In Dorset, the combination of an emerging Local Plan and a sub-five-year housing land supply position keeps planning policy in a transitional phase. Somerset’s unitary-wide Local Plan process remains in development, with existing district plans continuing to guide decisions in the interim (Source: Dorset Council; Somerset Council).
Collectively, these processes are shaping where new homes are most likely to come forward over the next plan period, with plan-making rather than individual schemes dominating the regional narrative.
Buyer Behaviour and Pricing Trends
Latest national data indicates that buyer activity has remained more resilient than price growth. Transaction volumes have held up well through 2025, even as annual price inflation remains modest (Source: Zoopla House Price Index, December 2025).
In the South West, both asking and achieved prices have shown small year-on-year declines, placing the region at the softer end of national performance. This reflects affordability pressures and a more cautious approach to pricing rather than a contraction in demand (Source: UK House Price Index; Rightmove market data).
Mortgage availability remains stable, with average fixed rates lower than earlier in the year and expectations of further gradual improvement into 2026. This has supported ongoing market activity, particularly among buyers able to proceed, while keeping overall price growth contained (Source: Bank of England; mortgage market commentary).
Regional New Homes Summary
Over the past fortnight, the South West new-build market has been characterised by stable transaction levels, modest price movement and continued focus on planning policy and land supply. Prices remain broadly flat with slight softening compared to the national average, while buyer activity continues at a measured pace. At the same time, Local Plan consultations in Devon, ongoing plan preparation in Cornwall, Dorset and Somerset, and varying housing land supply positions are steadily clarifying the long-term framework for residential development across the region.
South West New Homes Market Briefing – 1 December 2025
The South West new homes market enters December with steady headline pricing, softer indicators in parts of the region, and continued attention on Local Plan development across Devon, Cornwall, Dorset and Somerset. Market activity remains cautious, shaped by tax-policy discussion, seasonal slowdown and increasing focus on design, sustainability and deliverability in planning decisions.
Market Overview
Nationwide’s latest index shows UK house prices rising 0.3% in November, with annual growth easing to 1.8%, the slowest since mid-2024. Zoopla places annual growth at 1.3%, but notes that southern regions - including the South West - are now showing small annual price dips for the first time in roughly 18 months.
Budget headlines and speculation around property taxation have added to short-term hesitancy, particularly in higher-value parts of the region. The Bank of England’s December commentary confirms that UK banks remain well capitalised and that some capital requirements are being gradually relaxed, supporting stable mortgage availability.
Overall, the picture for the South West is one of modest, steady pricing with greater sensitivity around value, specification and running costs as buyers weigh affordability and long-term stability.
Regional Highlights
Devon: East Devon District Council has opened its second Regulation 19 consultation on the Emerging Local Plan, running until 26 January 2026. This version sets out updated proposals for where new housing, employment and infrastructure should be located up to 2042. The consultation is a key step in finalising the district’s spatial strategy, especially around Exeter, Cranbrook and the coastal settlements.
Cornwall: Cornwall Council continues its live Call for Sites as it prepares the new Local Plan. The council’s annual housing requirement now stands at 4,421 homes per year, more than 60% higher than the current adopted target. The latest Five-Year Housing Land Supply statement shows a 3.9-year supply, pointing to an ongoing need for additional deliverable sites across the county.
Dorset: Dorset Council is progressing its new Local Plan, following the August–October options consultation that explored where development could go through to 2043. Work also continues on a Dorset Design Code, intended to guide the appearance, character and layout of future residential development. These pieces together will shape expectations for density, placemaking and landscape integration.
Somerset: Somerset Council is continuing work on the Somerset Local Plan 2045, with recent evidence updates covering the Local Housing Needs Assessment and Gypsy and Traveller Accommodation Assessment. These studies will underpin future housing requirements and distribution across the county once the draft plan is published.
Planning, Land and Development Signals
Plan-making remains the defining theme across the South West:
Devon and Cornwall have active Local Plan consultations and site-identification processes shaping long-term development patterns.
Cornwall’s uplifted housing requirement and shortfall against a five-year land supply create clear pressure for additional site identification.
Dorset’s options consultation and emerging Design Code reinforce the growing importance of design quality, character and location in residential proposals.
Somerset’s evidence updates indicate steady progress towards a unified Local Plan covering the entire authority.
No single major scheme has dominated the period; instead, the regional narrative is driven by strategic planning work and updates to housing needs, land supply and design expectations.
Buyer Behaviour and Pricing Trends
Across the South West:
Price movements remain broadly stable but flatter than the national average.
Annual price changes are now slightly negative in parts of the region, according to Zoopla’s latest tracking.
Buyers remain active but selective, with more attention on specification, layout flexibility, energy efficiency and total running costs.
Mortgage availability remains broadly steady, supported by a resilient banking system and easing capital requirements, though buyers still approach decisions cautiously.
Seasonal slowdown and pre-Budget speculation have contributed to longer decision times and more measured enquiry levels.
New-build homes continue to command a premium where product quality, design and location justify it.
South West New Homes Market Briefing – 19 November 2025
The South West new homes market entered mid-November with softening asking prices, cautious buyer sentiment and growing pressure on developers to justify value. For SME housebuilders across Devon, Cornwall, Dorset and Somerset, this is a moment where early viability thinking, realistic pricing and product appeal will strongly influence both sales rate and margin.
Market Overview
Rightmove reports the sharpest November drop in UK asking prices since 2012, down 1.8% with over one-third of listings cutting their price. The uncertainty ahead of the Autumn Budget has encouraged sellers to price more realistically, while some buyers are delaying decisions to see if property taxes or incentives change.
The Bank of England has held Base Rate at 4.0%, but mortgage rates are slowly improving, with two-year fixed deals now around 4.4–4.5%. This is helping proceedable buyers, but sentiment is still cautious.
In the South West, new-build homes remain in demand, averaging around £380,000–£385,000 and continuing to hold a margin over resale stock. But buyers are far more selective, and schemes that feel repetitive, over-priced or lacking character are being forced into deeper negotiations.
Regional Highlights
Devon
Early policy discussion suggests that schemes of 150+ homes may soon be referred to central government rather than decided locally. This could reshape planning routes and timelines for larger projects. Smaller, well-argued schemes with strong local fit remain firmly in favour.
Cornwall
Neighbourhood planning continues to influence approvals. Design, mix, sustainability, and integration with local character are now major determining factors. Schemes that feel “generic” are struggling to progress cleanly.
Dorset
No standout policy updates, but market behaviour is increasingly location-led. Schemes in lifestyle-led or commuter locations continue to deliver stronger demand. Homes with thoughtful layouts, work-from-home space and stronger kerb appeal are outperforming box-standard product.
Somerset
Buyer confidence is stable but decision-making remains slow. More buyers are asking detailed questions about specification, layout flexibility, running costs and overall value–not just headline price.
Planning, Land and Development Signals
Central government is showing renewed interest in unblocking housing delivery, particularly where local authorities are inconsistent or slow to decide applications.
Committees across Devon and Cornwall continue to favour smaller, locally-sensitive schemes where documentation is clear and community benefit can be demonstrated.
Regeneration schemes, including Torquay’s harbourside redevelopment, are beginning to shift perception and improve value potential in surrounding areas.
Buyer Behaviour and Pricing Trends
Asking-price reductions are now common, particularly on stock that looks formulaic or is poorly positioned.
Buyers are showing increased interest in value-added incentives, not just discounts.
Mortgage rates are slowly easing, improving affordability for proceedable buyers, but expectations are still firm around value and specification.
New-build homes in the South West continue to justify a premium but only where the product feels distinctive, well-designed and aligned to lifestyle needs.