Four-Fold Property Price Gap in Dorset
- House prices in the local authority of Dorset are 0.2% higher than one year before. In Bournemouth, Christchurch, and Poole, they are 0.5% higher.
- Sales volume data is published with a delay. The now-published spike in March will be followed by a steep fall in April due to this spring's bottleneck caused by the SDLT changes.
- New builds in Dorset and in Bournemouth, Christchurch, and Poole, were up 8% and 6% despite pre-existing homes up 0% and 1%, YoY to May.
- Property prices in Dorset are currently 6% behind their peak of October 2022.
- Property prices in Bournemouth, Christchurch, and Poole are currently 7% behind their peak of December 2022.
- Canford Cliffs in Poole is the county's most expensive place to buy a home, at four times more expensive than the cheapest area.
- Corfe Mullen and West Moors have the lowest crime rate.
- Dorset has the greatest 10-year property price growth at 37%, followed by Bournemouth, Christchurch, and Poole at 35%. Year-on-year, both are 0%.
- Across the South West, house prices are expected to increase 0% through 2025, and 19% over the 5 years to 2029 (Savills).
Are house prices going up in Dorset?
Average house prices in Dorset have risen 0.2% since the same time last year. House prices in Bournemouth, Christchurch, and Poole have done slightly better at 0.5%.
Average house prices in both districts peaked in October and December 2022, now 6% and 7% behind that peak. It is unlikely that either district will break their highest price record this year.
Highest sales volume in Dorset since 2021
Sales volume is reported with significant delay, so we're just now seeing the spike in March caused by the SDLT hikes in April. As further data is released by the Land Registry, we'll see this balanced by an equally sharp drop in April, followed by healthy growth, as the market has been thriving throughout the summer.
Rising inflation and affordability challenges will continue to limit movement in the property market.
Will there be a UK recession in 2025?
The Quarterly Economic Forecast (QEF) predicts the UK economy will grow by 1.3% in 2025 and 1.5% in 2026. Source: British Chambers of Commerce (BCC).
This, however, is well below the pre-pandemic average. NEISR estimate that Britain's poorest households will not recover fully until 2027.
How does the Bank of England affect the Dorset Housing Market?
Borrowing has been slowly returning to a more affordable level. The August cut to 4.00% means that mortgage rates are already lower, but further cuts are unlikely until January, or December at the earliest.
Prices steadily increase as borrowing costs fall, making purchases more affordable. Oxford Economics predicts the base rate will fall to 2.5% in 2027.
Are you thinking of buying or selling a property in Dorset?
Are houses in Dorset expensive?
Average house prices in Dorset are higher than the average for the country as a whole. Some of the most expensive seaside locations in the country are in Dorset, including Sandbanks (£928,123) and Canford Cliffs (£960,424). However, these are three times higher than the cheaper locations in the county, which are more affordable than the country on average.
Abbotsbury was named Dorset's poshest village in a national list compiled by Savills. House prices in Abbotsbury have an overall average of £508,500 over the last year (Righmove).
"Despite being on the south coast of England, you’d be mistaken for thinking you were somewhere far more tropical, thanks to the Abbotsbury Subtropical Gardens, famed for its exotic and unusual flowers. Elsewhere, Abbotsbury Swannery provides a unique and exciting way to get close to nature, while the 18-mile-long Chesil Beach is minutes away."
Source: The TelegraphWhere is the cheapest place to buy in Dorset?
Homes in the Dorset local authority are cheaper than in Bournemouth, Christchurch, and Poole. Flats and Maisonettes in both parts of the county are cheaper than the national average, whereas all types of houses are higher than in England and Wales as a whole.
Springbourne in Bournemouth is the cheapest location, with an overall average property price of £237,975 over the last year (Rightmove). The village was once home to Victorian craftsmen and artisans employed in the growing town of Bournemouth, before if was absorbed as a suburb. It has great transport links to the town centre and houses a mix of young families, professionals and students, as well as a number of cultural events and festivals throughout the year.
Other affordable options include Melcombe Regis, Boscombe West, Portland, East Cliff, and Westham.
Long-term Dorset property market investment
The ten-year price growth in the county falls behind England and Wales as a whole (46%), by some margin, with 37% growth on property in Dorset, and 35% in the local authority district of Bournemouth, Christchurch, and Poole.
Year-on-year, it is a similar story, with both districts showing 0% growth compared to 3% across England and Wales.
New homes in Dorset are now 23% more expensive than existing properties
New houses cost more. However, the gap has broken records for two consecutive months, when it reached 22% in April and 23% in May. Normally, the gap fluctuates between around 5% and 15%, with the previous record standing at 17%. More recent data is likely to show an ever steeper divide, as figures are released by the Land Registry.
Interestingly, other regions are being affected to far greater extremes, making BCP an outlier. New builds in the North East are an eye-watering 118% dearer than existing homes.
The local authority of Bournemouth, Christchurch, and Poole is an outlier. With new builds costing 5% less than existing homes. This may be due to a higher focus on building affordable homes, including less-expensive flats and maisonettes.
The average cost of a new build in Dorset soared by 8% in 12 months.
This increase (and 6% in Bournemouth, Christchurch, and Poole) is likely caused by increased building costs, developers building larger homes for greater profit margins, and the squeeze on available development land.
It's important to note that this isn't an increase in the value of new builds after they've been bought, but the rising average cost of the brand new builds selling in each given month.
If you exclude newly-built properties, you can see that apart from a clear period of growth last summer, house prices in Dorset are more or less static since rebalancing after their peak in late 2022.
House prices may fall slightly over the winter before they begin to climb again, but if we see a return to the levels of growth predicted by Savills, winter 2025 is the perfect time to buy at the 'bottom' of the seasonal curve.
Where are the safest places to live in Dorset?
The ten safest towns in Dorset are shown in the graph below, with the lowest crime rate in Corfe Mullen, surrounded by beautiful Green Belt and the Dorset Heaths, and West Moors.
All of these locations in Dorset fall below the national average crime rate, which is 72, except for Weymouth, which is on par, also at 72 crimes per 1,000 residents.
Dorset overall has a crime rate of 52. The most prevalent type is Violence and Sexual Offences, but the crime rate for this type in Dorset is lower than the national average. Anti-Social Behaviour, Bicycle Crime, Vehicle Crime and Burglary are higher than the national average. Drugs, Possession of Weapons, Shoplifting and Robbery are also lower than the national average.
Crime rates will affect your insurance premiums and potential rental yield and may affect your peaceful enjoyment of the property.
Should I buy a house in Dorset?
Dorset is a top choice for homeowners
- 364 more hours of sunshine throughout the year in comparison to the UK average.
- 93% of Dorset's schools have been rated good or outstanding by Ofsted.
- Nearly 100 miles of beautiful coastline, including the Jurassic Coast.
- Over half of Dorset is an Area of Outstanding Natural Beauty.
- Award-winning beaches.
- Modern cities, historic market towns, and bucolic villages.
- Average life expectancy is four years longer than the national average.
- 4-6% rental yields.
- Employment opportunities in advanced engineering, tourism and leisure, and creative industries.
The cost of borrowing fell for the fifth time in August, and Dorset property prices have been fairly stable since the sharp hikes in '21-'22 and subsequent rebalancing in '22-'23.
If you can afford to buy now and get on the ladder before house prices start to increase again, you'll likely be able to switch to an even more affordable mortgage rate in 2027; by this point, you'll be able to remortgage with higher equity thanks to your mortgage payments and the predicted increase in property values.
Across the South West, house prices are expected to increase by 19% from 2025 to 2029
SavillsIf you are renting and can afford to buy at the current rate of interest, this may be a much more desirable option than saving for a bigger deposit, as rents are still rising, whereas mortgage rates are likely to fall through 2026 and into 2027.
However, if you are stretching your budget to buy or upsize, consider saving a bit longer or opting for a more affordable area. If the base rate rises again, you may be unable to keep up with your monthly repayments when your fixed rate ends.
If prices fall, you could end up in negative equity, owing more money than your home is worth. Buying a home with a mortgage always comes with risks. Your home may be repossessed if you do not keep up repayments on your mortgage.
If you are ready to buy a house in Dorset or the surrounding area, we can handle your purchase with a dedicated SAM Conveyancing Consultant to manage your transaction alongside one of our hand-selected panel solicitors.
September should carry on where August left off, with static house price movements, more sales agreed, and a further base rate cut to 3.75% in November or December.
Andrew Boast FMAAT MIC | CEO and Author | SAM ConveyancingSources: Latest data from - Gov.UK, Bank of England, UK House Price Index, Savills.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Without Killing Anyone
This book could be the difference between every mover’s dream, buying and moving into your new home stress free, or, stress, missed deadlines, legal disasters, building defects, and possibly the collapse of the whole transaction. (Costing you a small fortune, a head full of grey hairs, and, driving you to threaten the life of your solicitor, lender, co-owners, family, partner, or some combination of all five).
With more than two decades’ experience in the conveyancing sector and over 50,000 successful client moves under his belt, Andrew shares insider tips and advice to empower you as a buyer, giving you the tools to make the best decisions for your circumstances and ease the chaos.
Available on Amazon | Kindle | Paperback
