DURING the boom years of the last decade, as house prices soared prospective home buyers knew that waiting just a few months could mean paying significantly more for the property they wanted.
That all changed when the slowdown in the UK property market began in 2008. Amid concerns about the recession and job security, and the perceived difficulty of getting a mortgage, house prices began to slide.
For potential buyers, the fear was that by taking the plunge they might find themselves living in a home worth considerably less than they paid for it.
But now this reason for putting off getting on the property ladder looks increasingly at odds with the evidence.
A recent report by Exeter-based LSL Property Services indicated that prices across England and Wales have fallen only once in the past 16 months. And the average house price in March 2013 stood at £230,078 – just 0.8 per cent below the peak price seen in February 2008.
David Newnes, director of LSL Property Services plc, owner of Your Move and Reeds Rains estate agents, said: "House prices in England and Wales rose £532 between February and March and have only fallen once in the last 16 months, signalling that the housing market is now well clear of the storm clouds of the financial crisis.
"Values have risen £6,701 in the past year, and life has become marginally easier for first time buyers and house sales are increasing."
The report reveals big regional variations in house price trends over the past three months. While the South West lags far behind Greater London for growth in values, the region is faring better than the Midlands, Wales, the North and North West, and Yorkshire & Humber.
Mr Newnes added: "The key to the recovery of the housing market is more mortgages for first time buyers. The Funding for Lending scheme has gone some way to achieving that. It has eased the pressure on the market, allowing lenders to lower mortgage rates which have helped boost the first time buyer market."
Of course, buying a property is a long-term investment – and in this respect the outlook for purchasers in Devon should be reassuring. The law of supply and demand suggests that whatever happens in the next year or two, over a 10 or 20-year horizon there will be upward pressure across the board on property values.
Speaking at a seminar in the city earlier this year, Jon Neale, head of UK research for property consultants Jones Lang LaSalle, highlighted figures showing that the number of households in Devon and the South West is forecast to rise by more than 30 per cent between 2008 and 2033 – well above the UK average.
And many experts have warned of a shortage of new homes being built, meaning the value of existing housing stock is likely to increase.
Mr Neale also pointed out Exeter is at the heart of a popular area for relocation or downsizing, giving further grounds for confidence about long-term prospects for local property prices.
