Exeter remains one of the South West’s most attractive cities for property investors combining strong rental demand, a thriving student population, and ongoing regeneration. But if you’re considering your next buy-to-let, one key question still stands: what’s the best property type for rental yield in Exeter?
Whether you’re comparing flats to terraced homes or wondering if a family rental is still worth the outlay, this Exeter rental market review explores the options, the trends, and where to focus your investment in 2026.
Why Exeter is a landlord-friendly location
Before we dive into property types, it’s worth reminding ourselves why Exeter continues to perform so well for investors:
- A growing population with over 130,000 residents
- Two universities attracting students and academic staff
- Strong transport links and a regional airport
- High demand from young professionals and relocating families
- Historic architecture, green spaces, and a lifestyle people love
Rental demand remains high across the city, and void periods are typically short especially in sought-after areas like Heavitree, St Leonard’s, and the city centre.
Apartments vs houses: rental yields in 2026
When comparing apartment vs house rental Exeter opportunities, it’s all about the numbers.
One-bedroom and studio apartments
- Average rent: £900 – £1,100 pcm
- Target tenants: Professionals, postgraduate students, singles
- Typical locations: City centre, Newtown, Mount Pleasant
- Yield potential: 5% – 6.5%
Flats are low maintenance and can offer high returns, especially if bought at a good price in a central location. However, be mindful of service charges and leasehold restrictions, which can affect profits.
Two- or three-bed terraced houses
- Average rent: £1,100 – £1,400 pcm
- Target tenants: Young families, sharers, working couples
- Typical locations: St Thomas, Polsloe, Heavitree
- Yield potential: 4.5% – 6%
Terraced houses strike a strong balance between affordability and demand. They’re ideal for long-term lets and can attract stable tenants who want space without the cost of a detached home.
Larger family homes (3-4+ beds)
- Average rent: £1,500 – £2,000+ pcm
- Target tenants: Professional families, relocating workers
- Typical locations: Pennsylvania, St Leonard’s, Alphington
- Yield potential: 3.5% – 5%
While family homes usually deliver lower yields due to higher purchase prices, they tend to offer longer tenancies, less turnover, and potential for capital growth over time.
What’s influencing the Exeter rental market in 2026?
Several trends are shaping returns for landlords:
- Rising mortgage rates have made buying harder for first-time buyers keeping demand strong in the rental market
- Students returning to the city post-pandemic have boosted demand in areas like Mount Pleasant and Stoke Hill
- Working-from-home flexibility means tenants are looking for space both inside and outside
Combined, these trends point to continued demand across all property types but particularly homes with outdoor space, extra rooms for offices, and energy efficiency.
Smart tips for Exeter landlords
To get the most from your investment:
- Research local demand – Speak to letting agents about what’s popular in each area
- Keep your EPC rating up – Energy rules are tightening, and tenants are looking for low-cost living
- Review your mortgage regularly – The right finance can boost your net yield
- Consider professional management – Especially for HMOs, student lets or long-distance landlords
At Hunters Exeter, we help landlords make informed choices from sourcing and marketing, to managing tenancies and maintaining compliance.
Thinking of investing in Exeter?
If you’re ready to expand your portfolio or buy your first rental, now’s a great time to assess the market and look at the numbers.
We’ll help you identify the best property type for rental yield Exeter has to offer based on your goals, budget and risk level. With local insight and full property management, you can invest with confidence even in a shifting market.
