Why Now Could Be the Best Time to Buy Instead of Rent in Exeter

Exeter has long been a desirable place to live, thanks to its vibrant city centre, strong local economy, and excellent schools and universities. In 2025, a combination of falling mortgage rates and rising rental costs is making buying a home in Exeter increasingly attractive – and for many, it may now be cheaper than renting.

Falling Mortgage Rates Are Changing the Game

Over the past year, mortgage rates in the UK have decreased from their post-2022 highs. Lower interest rates mean that monthly mortgage payments are more affordable, making homeownership financially viable for many first-time buyers.

• For example, a £250,000 mortgage at a 4.5% interest rate costs roughly £1,265 per month, while a similar property might rent for £1,300–£1,400 in Exeter.

• This gap is widening as rent continues to increase due to high demand in student and professional areas.

Buying now can provide long-term financial stability and build equity, rather than paying rising rental costs with no return on investment.

Exeter Property Market Remains Strong

Exeter’s housing market is resilient:

• First-time buyers accounted for nearly 46% of new-build enquiries in Q1 2024, up from 31% in Q1 2023.

• Areas like Streatham, Heavitree, and Pennsylvania offer a mix of apartments and houses suitable for new homeowners.

• The strong rental market ensures properties retain excellent resale or rental potential.

Buying vs Renting: Financial Benefits

1. Equity Building – Each mortgage payment contributes to ownership, unlike rent.

2. Stable Costs – Fixed-rate mortgages protect against future rent hikes.

3. Government Incentives – Schemes for first-time buyers, such as Help to Buy, can reduce upfront costs.

4. Potential Rental Income – Purchasing a property in a student or high-demand area allows flexibility to rent it out if circumstances change.

How to Take Advantage

• Check Mortgage Rates Early: Shop around to find the best deals and consider locking in a fixed-rate mortgage.

• Assess Your Budget: Factor in deposit requirements, stamp duty (post-April 2025 changes), and ongoing maintenance costs.

• Research Areas Carefully: Focus on areas with strong rental demand or high resale potential.

• Seek Professional Advice: Speak with mortgage brokers or financial advisors to understand long-term implications.

Final Thoughts

With falling mortgage rates, rising rents, and a robust property market, Exeter is positioning itself as an attractive option for homebuyers in 2025. For many, now may be the perfect time to invest in a property rather than continue renting, offering both financial security and long-term benefits.