South West Property Market: Regional Analysis & County Comparison, Q3 2026 Edition

The South West region encompasses 7 counties, recording a combined 66,820 residential transactions in the 12 months to 31 May 2026. The regional median property price stands at £302,498, with prices falling by 1.6% year-on-year.

On a quarterly view, South West median prices moved from £310,533 in Q3 2024 to £306,267 in Q4 2025, a change of -1.4% over 5 quarters. The most recent quarter is excluded because HM Land Registry registrations for it are still incomplete.

Local planning authorities across the region approved 7,930 residential applications and refused 1,428 in the last 12 months, a decision-weighted approval rate of 85%.

HM Land Registry has so far registered 1,834 new-build sales across the region for the past 12 months. Registrations lag completions by 6 to 18 months, so this is not a completions figure.

The table below compares all 7 counties in the South West region, ranked by median property price. Click any county name for the full market report.

Property prices across South West vary significantly. Dorset commands the highest median price at £340,000, while Devon offers the most affordable entry at £282,500 — a spread of £58k.

This price differential creates opportunities across the risk-return spectrum. Premium locations offer higher GDVs but require larger capital commitments, while more affordable areas can deliver stronger percentage returns on lower absolute investment.

Measured by residential planning approvals in the last 12 months, the most active counties in South West are Gloucestershire (2,432 approved, 88% approval rate), Devon (2,166 approved, 86% approval rate), Somerset (1,035 approved, 80% approval rate).

By total transaction volume, an indicator of market liquidity and exit confidence, Devon (16,381 sales), Somerset (11,197 sales), Gloucestershire (11,047 sales) lead the region.

Developers entering the South West market should weigh these two metrics together: approvals show where consent is being granted, while transaction volume confirms buyer demand.

Development finance across South West varies by location and scheme size. In premium areas like Dorset, typical scheme GDVs support larger facilities, while more affordable counties may suit developers using bridging finance for refurbishment-led strategies.

Senior development finance is available from 6.5% p.a. at up to 65-70% LTGDV, with mezzanine finance stretching total borrowing to 85-90% of costs. For developers building across multiple sites in the region, portfolio-level facilities can offer better terms.

Construction Capital sources terms from 100+ lenders across the South West region. Submit your scheme through our deal room for indicative terms within 24 hours.