In March, the county of Dorset saw its house prices rise by 1.7%, surpassing the growth rates seen both across the broader South West and the UK. This rise is part of a longer-term trend of steady growth in the region’s property market.

Over the past year, Dorset’s housing market has witnessed a consistent increase, with prices rising by an average of 1.3%. This upward trajectory has resulted in an average house price of £360,812 by the end of March, as reported by the Land Registry. This rise represents an increase of £4,500 over the year, positioning Dorset as 11th among the South West’s 26 local authorities in terms of annual property price growth.

Regional Comparisons

Dorset’s monthly price increase of 1.7% stands out, especially when compared to the modest 0.2% increase observed across the South West. The county’s growth also outstrips the national average, which saw a 0.7% rise in the same period.

Varied Growth Across Property Types

Different types of properties in Dorset experienced varied rates of price growth in March:

• Semi-detached homes led the way with a 1.9% increase, reaching an average price of £356,334. Over the past year, prices for semi-detached houses have risen by 2.9%.
• Detached homes saw a monthly increase of 1.6% and a yearly rise of 1%, with prices averaging £531,697.
• Terraced houses increased by 1.7% in March, with an annual growth of 1.9%, bringing the average price to £284,261.
• Flats experienced a 1.8% increase for the month but have slightly decreased by 0.3% over the past year, averaging £195,058.

The First-Time Buyer’s Challenge

Entering the property market in Dorset remains a costly affair for first-time buyers, who spent an average of £282,200 on their first home, marking a £4,000 increase from the previous year. This figure is £55,100 higher than it was in March 2019. In contrast, former owner-occupiers paid an average of £403,300 in March, which is 42.9% more than what first-time buyers typically spent.

Comparing Prices Across the South West

Dorset properties are notably pricier than the average home in the South West, which stood at £316,000 in March—a 14.1% difference. Moreover, property prices in Dorset are substantially higher than the UK average of £283,000. The most expensive properties in the South West are found in the Cotswolds, where average prices reached £496,000, considerably higher than in Dorset.

Extremes Within the Region

The disparity in property values within the South West is striking. Stroud witnessed the highest annual growth in the region at 9.8%, with average prices reaching £357,000. On the other end, the Forest of Dean saw a significant drop, with property values declining by 5.5%, leaving the average at £290,000.

Summary of Key Statistics

To recap, here are the essential figures for March:

• Dorset: Average price: £360,812; Annual growth: +1.3%
• South West: Average price: £316,262; Annual growth: +0.5%
• UK: Average price: £282,776; Annual growth: +1.8%
• Highest and lowest growth in South West: Stroud: +9.8%; Forest of Dean: -5.5%

Dorset’s property market is thriving compared to its regional counterparts, offering a robust investment opportunity but also posing challenges for first-time homebuyers facing steep entry prices.