Welcome to LL&Co’s Cornwall Property Market Report for March 2025. We closely monitor market trends to provide you with valuable insights, whether you’re renting, buying, or investing in Cornwall’s housing market.
To set the scene, we’ll first explore the broader UK housing market before focusing on Cornwall.
UK Housing Market Overview – March 2025
In March 2025, the UK housing market exhibited notable activity influenced by impending changes to Stamp Duty Land Tax (SDLT). Anticipation of these changes prompted a surge in property transactions as buyers aimed to finalise purchases before the new rates took effect on 1 April. This behaviour mirrored patterns observed during previous adjustments to SDLT, where transaction volumes spiked prior to implementation dates. Landlord TodayNationwide House Price Index
According to Landlord Today, February 2025 saw minimal movement in house prices, with Halifax reporting a slight 0.1% decrease and Rightmove indicating a 0.5% increase in asking prices. This period of relative stability was likely a prelude to the heightened market activity in March, driven by buyers’ urgency to complete transactions ahead of the SDLT revisions. Landlord Today
The adjustments to SDLT involved a reduction in the tax-free threshold for first-time buyers from £425,000 to £300,000, and for existing homeowners from £250,000 to £125,000. Consequently, properties priced at £350,000 experienced an increase in SDLT from £5,000 to £7,500 starting in April. This impending financial impact motivated buyers to expedite their purchasing decisions, resulting in a flurry of activity in March. Landlord Today+1Latest news & breaking headlines+1
Despite the short-term volatility induced by the SDLT changes, the broader outlook for the UK housing market in 2025 remained cautiously optimistic. Nationwide projected house price growth within the range of 2% to 4% for the year, supported by factors such as lower mortgage rates and steady income growth. However, affordability challenges persisted, particularly for first-time buyers facing high deposit requirements and elevated borrowing costs. Nationwide House Price Index
What Happened in the UK Rental Market in March 2025?
In March 2025, the UK rental market experienced a moderation in rental inflation, with average rents increasing by 3% over the past year. This marks the lowest rate of growth in 3.5 years and a significant decline from the 7.4% annual increase observed in the previous year. Zoopla+1Zoopla+1
The supply-demand imbalance showed signs of improvement during this period. The number of homes available for rent increased by 11%, while rental demand decreased by 17% compared to the same period in the previous year. Despite these changes, competition among tenants remained intense, with an average of 12 renters vying for each available property. This figure, although a 42% reduction from the peak levels between 2022 and 2024, still represents a higher level of competition than that seen before the pandemic. Zoopla+1Zoopla+1Zoopla
Affordability continued to be a pressing concern, as the annual cost of renting in the UK rose by £3,000 over the past three years, reaching £15,400. This increase has outpaced earnings growth, leading to financial strain for many tenants. The rental market requires additional supply to alleviate these affordability challenges. However, upcoming rental reforms and other policy changes are anticipated to limit new investment and the growth of rental stock, potentially exacerbating the existing supply constraints. Zoopla+1Zoopla+1
Looking ahead, UK rents are projected to increase by 3-4% over the course of 2025. This forecast reflects the ongoing supply-demand dynamics and the affordability pressures that continue to shape the rental market landscape. Zoopla+1Zoopla+1Zoopla
These trends underscore the need for strategic policy interventions aimed at increasing the supply of rental properties and addressing affordability issues to ensure a more balanced and sustainable rental market in the UK.
Now, let’s take a closer look at what’s happening in Cornwall’s property market.
What Happened to Cornish Property Prices in March 2025?
In March 2025, Cornwall’s housing market saw a modest increase in property prices, with the average house price rising to £305,000, reflecting a 2.7% annual growth. This steady rise aligns with trends seen across the South West, where demand for rural and coastal properties remained strong despite wider economic uncertainty (ONS).
Regional variations persisted within Cornwall, with popular coastal towns such as St Ives and Padstow experiencing sharper price increases due to continued interest from second-home buyers and lifestyle-driven relocations. In contrast, inland areas saw more moderate growth as affordability constraints impacted buyer demand (Nationwide Building Society).
This continued upward trend suggests that Cornwall’s property market remains resilient, supported by a mix of local and external demand, even as broader UK house price growth slowed in early 2025.
Cornwall Rental Market – March 2025
The rental market in Cornwall continues to show dynamic trends, with a growing number of available properties and varying rental prices across different property types. According to data from Home.co.uk, there are currently 609 rental properties on the market, with 183 new listings added in the last 14 days. The average rent for properties in Cornwall now stands at £1,325 per calendar month (pcm), reflecting the continued demand for rental homes in the region.
A breakdown of rental prices highlights the diverse nature of the market. The majority of properties fall within the £500 to £2,000 pcm range, with 246 listings priced between £500 and £1,000 pcm and 289 properties in the £1,000 to £2,000 pcm bracket. Meanwhile, 52 properties are available for rents between £2,000 and £5,000 pcm, and the most expensive segment, with rents exceeding £5,000 pcm, comprises just seven properties. A small number of listings—15 in total—are available for rents below £500 pcm.
Rental prices also vary depending on the number of bedrooms. One-bedroom properties in Cornwall have an average rent of £785 pcm, while two-bedroom homes are priced at around £1,080 pcm. Three-bedroom properties command an average of £1,379 pcm, whereas four-bedroom homes see a significant rise in cost, averaging £2,072 pcm. The highest rental prices are seen in five-bedroom properties, which have an average rent of £2,437 pcm.
When considering property types, houses dominate the market, with 376 available listings and an average rent of £1,406 pcm. Flats are slightly less common, with 181 available, and they command an average rent of £1,288 pcm. The most affordable option is renting a room, with 18 listings and an average rent of £663 pcm.
Overall, the Cornwall rental market remains competitive, with a substantial number of new listings providing fresh options for renters. While the variety in price ranges and property types offers flexibility, the rising rents indicate continued strong demand in the region.
Falmouth Rental Market – March 2025
The rental market in Falmouth is displaying a diverse range of options, with a notable spread in pricing. According to recent data, there are currently 56 rental properties available in the area, with an average monthly rent of £2,690 and a median rent of £1,900 pcm. Over the past 14 days, 10 new properties have been listed, indicating a steady flow of rental opportunities in the market.
The distribution of rental prices in Falmouth reveals some key trends. A total of 8 properties fall within the £500 to £1,000 pcm bracket, while 22 are listed between £1,000 and £2,000 pcm. The higher price ranges see significant activity as well, with 20 properties available between £2,000 and £5,000 pcm and 6 properties exceeding £5,000 pcm. Notably, there are no listings below £500 pcm, highlighting a market that leans towards mid to high-end rental properties.
When broken down by property type, flats in Falmouth command an average rent of £3,045 pcm, with a median of £2,867 pcm. Houses, on the other hand, have a lower average rent of £2,491 pcm and a median rent of £1,850 pcm. There are currently no listings for rooms to rent, which may limit more budget-conscious rental options.
Looking at the availability by number of bedrooms, one-bedroom properties have an average rent of £1,006 pcm, while two-bedroom homes are listed at £1,518 pcm on average. Three-bedroom properties are priced at £1,794 pcm, and four-bedroom homes come in significantly higher at £2,912 pcm, with a median rent of £3,045 pcm. Larger properties, such as five-bedroom homes, average £3,791 pcm, reflecting the premium pricing for spacious accommodation in the area.
Overall, Falmouth’s rental market offers a range of options, but it is weighted towards higher-priced properties. With limited availability at the lower end of the market and no rooms currently listed, prospective tenants may find fewer affordable choices. However, for those seeking larger homes or higher-end rentals, Falmouth presents a diverse selection, indicating strong demand for premium accommodation.
That’s all for this month’s market report so if you’re looking for any further information about the Cornish property market, please feel free to contact us.
If you’re thinking of buying, selling, letting or renting property in the county, please don’t hesitate to get in touch. Click here for the easiest way to contact us.
