Published: 21 October 2026
The UK property market continues to navigate changing mortgage rates, cautious buyer confidence and evolving rental legislation. But what does this mean for homeowners, landlords, investors and tenants across Plymouth, Devon and Cornwall?
At Atlantic Keys Estate Agents, we’re taking a closer look at the latest figures, the changing property landscape and what to expect as we head towards the end of 2026.
UK House Prices: Growth Slows as Buyers Remain Cautious
The latest figures from the Office for National Statistics (ONS), published on 21 October 2026, show that average UK house prices increased by just 0.9% in the 12 months to August 2026, bringing the average property value to approximately £273,000.
Meanwhile, Rightmove’s October House Price Index reports:
- Average UK asking price: £371,015
- Monthly asking price increase: 1.0%
- Annual asking price change: -0.1%
- Sales agreed: 8% below the same period last year
These figures highlight a market where properties are still selling, but buyers are increasingly conscious of affordability.
It’s important to distinguish asking prices from completed sale prices, as they measure different aspects of the housing market.
Our view: Correct pricing from the outset is becoming increasingly important. Sellers who enter the market significantly above realistic market value may face longer marketing periods and subsequent price reductions.
Mortgage Rates: What Buyers Need to Know
The Bank of England maintained its base rate at 3.75% in September, with its next interest-rate decision scheduled for 5 November 2026.
However, mortgage borrowing costs have risen. According to Rightmove, the average two-year fixed mortgage rate reached approximately 5.55% in October, compared with 5.29% the previous month.
Higher borrowing costs can directly affect how much prospective buyers can afford, particularly first-time buyers and those moving up the property ladder.
For sellers, this reinforces the importance of competitive pricing, professional marketing and a realistic understanding of buyers’ financial positions.
Plymouth Property Market: Local Trends
Plymouth continues to offer a range of opportunities for homeowners, first-time buyers and property investors.
The latest verified local ONS figures show:
- Average property price: £223,000 in July 2026
- Annual property price growth: 2.2%
- Average monthly private rent: £1,004 in August 2026
- Annual rental growth: 4.7%
Plymouth’s rental growth was higher than the wider South West figure of 4.4% over the same period.
This highlights the importance of obtaining an accurate rental appraisal rather than relying on historic rental levels or advertised asking prices.
For landlords, the right combination of pricing, tenant selection, property presentation and ongoing management remains essential.
Devon and Cornwall: A Varied Regional Market
Property values and rental trends differ considerably across the South West.
The following figures illustrate some of those differences.
| Area | Average House Price | Average Monthly Rent |
|---|---|---|
| Plymouth | £223,000 | £1,004 |
| Exeter | £283,000 | £1,318 |
| South Hams | £355,000 | £1,012 |
| Cornwall | £276,000 | £1,000 |
Source: ONS local authority statistics. House prices relate to July 2026 and average rents to August 2026. House prices are provisional and subject to revision.
Exeter continues to command higher average rents than Plymouth, while the South Hams has a significantly higher average purchase price.
Across Cornwall, conditions vary considerably between coastal communities, rural locations and larger towns.
These differences demonstrate why local market knowledge is essential when selling, letting or assessing a potential investment.
Rental Market: Rents Continue to Rise Nationally
The latest ONS figures show average UK private rents reached £1,406 per month in September 2026, representing an annual increase of 3.8%.
In England, average rents reached £1,466 per month, up 4.0% over the year.
These figures include new and existing tenancies and should not be treated as advertised asking rents for newly available properties.
For landlords, rising rental values can create opportunities to review the performance of their investments. However, any rent increase must comply with the applicable legal requirements.
Renters’ Rights Act: Important Changes for Landlords
The Renters’ Rights Act introduced significant changes to private renting in England from 1 May 2026.
Key reforms include:
- The abolition of Section 21 no-fault evictions.
- The move to periodic assured tenancies rather than fixed-term assured tenancies.
- New restrictions on the frequency and process of rent increases.
- Restrictions on rental bidding above the advertised rent.
- Stronger rights for tenants to request permission to keep pets.
- Protections against discrimination involving children or receipt of benefits.
Landlords should also remain aware of existing obligations involving deposit protection, gas and electrical safety, energy performance, repairs and property licensing where applicable.
For HMO landlords, additional licensing, planning and fire-safety requirements may apply depending on the property’s location and occupancy.
Further reforms, including a private rented sector database and landlord ombudsman arrangements, are being introduced in later phases.
At Atlantic Keys, we can help landlords review their rental arrangements, understand compliance requirements and manage their properties professionally.
Our Outlook for the Remainder of 2026
We expect affordability, interest rates and confidence to remain key influences on the housing market.
For sellers, realistic valuations and strong presentation should remain priorities.
For landlords, maintaining compliant, well-managed accommodation and regularly reviewing rental performance are sensible approaches in a changing market.
For investors, opportunities still exist, particularly where purchase price, rental demand, maintenance costs and achievable yield are assessed carefully.
The market is not uniform. The outlook for a Plymouth city-centre apartment may be quite different from that of a family home in the South Hams or a coastal property in Cornwall.
Thinking of Selling or Letting Your Property?
Whether you’re considering selling your home, renting out a property or expanding your investment portfolio, Atlantic Keys Estate Agents can help.
We provide residential sales, lettings, property management and HMO management services across Plymouth, Devon and Cornwall.
Our approach combines local property knowledge, straightforward advice and transparent fees.
Get in touch for a free, no-obligation property valuation or rental appraisal.
Atlantic Keys Estate Agents
Website: www.atlantic-keys.co.uk
General enquiries: hello@atlantic-keys.co.uk
Property sales: sales@atlantic-keys.co.uk
Supporting Our Community
We’re proud to support PATH Devon, a local homelessness charity.
Atlantic Keys donates 10% of its profits to PATH Devon, helping support people facing homelessness and housing difficulties in our community.