Exeter has long been considered one of the South West’s most attractive places to live. With its strong local economy, excellent universities and growing healthcare sector, the city continues to attract a wide range of tenants looking for quality homes.
For landlords and investors, recent market data highlights an important trend. Rental growth in Exeter is now outpacing the growth seen in the local sales market. According to the latest Office for National Statistics data, the average private rent in Exeter reached £1,319 in January 2026, representing an annual increase of 3.7%.
For investors analysing the numbers, this signals a market where rental demand remains strong and void periods are falling. Letting agents and property experts are increasingly pointing towards buy-to-let Exeter as one of the most stable investment options in the South West.
Why Exeter’s rental market is outperforming sales growth
Across many parts of the UK, property sales markets have slowed slightly following the rapid price growth seen in recent years. In contrast, rental markets have continued to strengthen due to limited supply and increasing tenant demand.
Exeter reflects this national trend but with a particularly strong local dynamic. With rents now averaging £1,319 per month, landlords are seeing consistent growth in rental income while property prices have stabilised.
For investors, this difference can improve yield potential. When rental income grows faster than property prices, the return generated by each investment property becomes more attractive over time.
This is one of the key reasons why property analysts are increasingly highlighting buy-to-let Exeter opportunities for landlords seeking steady returns rather than short-term speculation.
Professional tenants are driving demand in the city
Exeter’s population includes a large number of professionals who work in education, healthcare, finance and the public sector. These tenants often look for long-term homes that offer stability and convenience.
Professional renters typically prioritise well-maintained properties located close to employment centres and transport links. Areas near the city centre, St Leonards and Heavitree remain particularly popular because they provide easy access to workplaces and amenities.
For landlords, this type of tenant demand can be highly beneficial. Professional tenants often remain in properties for longer periods and prioritise reliability and quality accommodation.
When a property meets these expectations, landlords often experience fewer void periods and more consistent rental income.
The Royal Devon and Exeter Hospital supports rental demand
One of the strongest drivers of tenant demand in Exeter is the Royal Devon and Exeter Hospital (RD&E). As one of the region’s largest employers, the hospital attracts healthcare professionals from across the UK and overseas.
Doctors, nurses, consultants and medical support staff frequently relocate to Exeter for work opportunities. Many of these professionals initially rent while settling into the city, creating consistent demand for high-quality rental homes.
Properties located near the hospital or within easy commuting distance are particularly attractive to medical professionals. Areas such as Heavitree and St Leonards often see strong interest from tenants working at RD&E. For landlords considering buy-to-let Exeter, this steady flow of healthcare professionals provides an additional layer of stability within the local rental market.
Limited rental supply is supporting rising rents
Another factor supporting rental growth in Exeter is the relatively limited supply of available homes. Over the past few years, demand for rental properties has grown faster than the number of homes entering the market.
When supply is constrained, rental values tend to increase as tenants compete for available properties. This has been one of the key drivers behind Exeter’s recent rental growth.
For landlords, limited supply can also reduce the likelihood of extended void periods. Properties that are well presented and correctly priced often attract interest quickly once they become available. This environment can be particularly beneficial for landlords seeking stable and predictable rental income.
Exeter’s economy continues to support tenant demand
Exeter’s rental market benefits from a diverse and resilient local economy. The city is home to major employers in sectors including education, healthcare, retail and professional services.
The presence of the University of Exeter also plays a major role in sustaining demand for rental accommodation. While many students live in dedicated student housing, graduates often remain in the city and transition into the professional rental market.
This constant flow of graduates and professionals helps maintain demand across a wide range of property types. One bedroom apartments, two bedroom flats and small family homes all attract interest from different tenant groups. For landlords, this diversity helps create a balanced rental market that is not dependent on a single tenant demographic.
Why void periods remain historically low
One of the most important indicators for landlords is the amount of time a property sits empty between tenancies. In Exeter, void periods are currently at some of their lowest levels in recent years.
Strong demand from professionals and healthcare workers means that well-located properties often secure tenants quickly. When properties are priced correctly and presented well, they rarely remain vacant for long.
Lower void periods improve the overall performance of a buy-to-let investment. Consistent occupancy ensures that landlords maintain regular rental income and reduce the financial impact of vacant properties. For investors analysing rental markets across the South West, this stability makes buy-to-let Exeter an increasingly attractive option.
Property types that perform well in Exeter
While Exeter’s rental market supports a variety of property types, certain homes consistently attract strong demand from tenants.
Two bedroom apartments and small terraced houses remain particularly popular among professional renters. These properties provide enough space for home working while remaining affordable compared with larger family homes.
Properties located close to employment centres, transport routes and local amenities tend to perform especially well. Accessibility remains one of the most important factors influencing tenant decisions. Landlords who focus on these property types often find that their homes attract interest quickly when entering the rental market.
Why local knowledge matters when investing
Data provides a useful overview of the property market, but local insight often makes the biggest difference when choosing where to invest.
Rental demand can vary significantly between neighbourhoods and property types. Working with experienced agents who understand the Exeter market can help landlords identify opportunities that align with current tenant preferences.
Professional property management can also help landlords maintain high standards while ensuring compliance with evolving regulations. From tenant screening to maintenance coordination, expert support helps keep rental properties running smoothly.
Landlords who want to explore the potential of their investment can start here:
Why 2026 presents a strong opportunity for landlords
The latest rental figures from Exeter highlight a market that continues to show resilience and steady growth. With average rents now exceeding £1,300 per month and annual growth reaching 3.7%, the city remains an appealing location for property investment.
Strong demand from professionals, healthcare workers and graduates provides a stable tenant base. At the same time, limited rental supply continues to support rising rental values across the city.
For investors looking beyond short-term price speculation, these conditions create a favourable environment for long-term rental income. As a result, buy-to-let in Exeter is increasingly being viewed as one of the South West’s most reliable property investment opportunities.
Speak to the local property experts
Every property market has its own dynamics, and understanding these local details can help landlords make more informed decisions. Exeter’s rental market is influenced by employment hubs, transport connections and the growing demand from professional tenants.
Our team at Hunters Exeter works closely with landlords and investors across the city, helping them identify opportunities and maximise the potential of their properties. With detailed knowledge of the local market, the branch can provide guidance on property types, rental values and tenant demand.
Book a free valuation with us today.
Whether you are considering your first investment property or expanding an existing portfolio, expert advice can help ensure your investment performs as expected.
To learn more about buy-to-let Exeter opportunities or to discuss letting your property, speak to the local team today.
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