Property prices here have been among the most buoyant in Britain for the past decade, due largely to population movements: some 307,000 more people have moved into the region than have left it since 1996. Add in the attractions of Devon and Cornwall for second-homers and it is easy to see why the market has been booming.

Holiday homes account for about 10% of properties in the South Hams, around Dartmouth and Torbay, and in north Cornwall. “Second-home buyers are around, but the market’s not quite as busy as in 2005 and 2006,” says Richard Pittendrigh, of agents Martin Diplock in Lyme Regis. He blames rising interest rates.

Regeneration schemes mean the region’s cities are doing well, too. Late last month, a tented village sprang up in a smart shopping precinct in central Exeter, as buyers queued to buy 23 flats priced at up to £600,000 in the luxury Princesshay development. Plymouth, the most affordable city in the region, with an average house price of £148,500, has hitherto lagged behind, but looks set to benefit from a 10-year regeneration programme.

“The place is moving,” says Chris Forrest, a consultant at agents King Sturge Bettisons. More regeneration is under way in Bristol.

Average property price: £190,710

Annual increase: 8.4%

Predictions: Knight Frank says that prices in the region will rise 7% this year. A good long-term bet may be Weymouth and Portland, which hosts Olympic sailing events in 2012

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