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Paragon backs £9m green housing push in Exmouth as demand outpaces supply


Paragon Bank has provided a £9 million revolving credit facility to developer 3West Group, funding the latest phase of the Goodmores project in Exmouth. The deal supports the construction of 71 energy-efficient homes in a buoyant local market—offering potential opportunities for landlords watching for high-demand, high-yield rental areas.

Sustainable housing with investor appeal
The Goodmores development, which now spans three phases with a total gross development value of around £90 million, is designed with strong EPC ratings in mind. Features such as EV charging points and energy-efficient construction align with Paragon’s Green Homes Initiative, offering developers up to 50% off loan exit fees for schemes achieving an A EPC rating on most private units.

This focus on green credentials isn’t just a selling point for buyers—it’s increasingly relevant for landlords. Upcoming EPC regulations could restrict the rental of lower-rated properties, making new-build A-rated homes in high-demand locations like Exmouth a potentially low-maintenance addition to a portfolio.

Exmouth market outperforms national trends
While some parts of the UK are seeing slower house price growth, Exmouth’s market remains resilient. Average property prices in July 2025 stood at £362,000—35% above the national average—with East Devon recording a 4.2% annual increase. Buyer demand in the area is also up 8% compared to early 2024.

The mix of coastal living, green spaces, and strong transport links to Exeter keeps demand steady. For landlords, this combination means both a healthy resale market and a steady stream of potential tenants, particularly as energy costs remain a key consideration for renters.

Paragon Bank’s Relationship Director, James Helmore, said: “The strength of the local market and the quality of the scheme make this a compelling project. We’re committed to backing quality regional housebuilding where it’s needed most.”

Long-term partnerships driving regional supply
Paragon’s relationship with 3West began in December 2022, with earlier funding supporting phases one and two. This latest facility refinances a bridging loan provided in June 2024 to acquire the current site.

James Fowler, Director of 3West Group, praised the collaboration: “Paragon has been a supportive and flexible funding partner from the outset. Their understanding of the development process and commitment to our vision has been key to progressing this scheme.”

For landlords, developments like Goodmores represent more than just new housing—they are potential entry points into a market where sustainable credentials and strong location fundamentals combine to support long-term returns.

Editor’s view
Regional developments with strong energy ratings are increasingly becoming prime investment targets. With regulatory pressures mounting on less efficient stock, landlords who pivot towards high-EPC new builds could secure both compliance and market appeal for years to come. The real challenge will be securing a foothold in these competitive micro-markets before the best opportunities are gone.

 

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