The property market in Britain is buzzing in some areas, and leading the charge is the luxurious Sandbanks, a coastal gem that has seen a staggering 20% hike in asking prices in just one year. This has crowned Sandbanks as Britain’s top property hotspot, with average asking prices nearly touching £2 million.
Sandbanks, nestled along the Dorset coastline, is not new to the limelight. Known for its opulence, it’s among the world’s most expensive locales for property investments. The latest data from Rightmove confirms this trend, with average prices soaring to £1,909,943 in 2023, a notable leap from £1,586,349 in 2022.
This sharp increase in Sandbanks starkly contrasts the national scenario. Across the UK, asking prices dipped by 1.1% at the end of 2023 compared to the previous year, painting a mixed picture of the property market.
Regional Hotspots and the Rental Market
While Sandbanks leads, other areas like Hulme in Greater Manchester and Hockley in Birmingham also feature among the top property hotspots. The rental market, too, tells an interesting tale. With a severe shortage of rental properties and escalating rental prices, more tenants are considering moving out of cities. In major cities, 54% of tenants sought homes outside their current city in 2023, a slight increase from 51% in 2022.
London remains the most searched-for location, but interesting shifts are seen with Cornwall and Devon being highly sought after, and Glasgow climbing the ranks as a preferred location.
Fastest Moving Markets
In terms of rapid sales, Rosyth in Dunfermline takes the crown, with homes finding buyers in just 17 days on average. Scotland, in general, shows quicker market movements compared to the rest of Britain.
The Impact of Inflation and Interest Rates
Nathan Emerson from Propertymark points out the impact of inflation and rising interest rates on house prices. He emphasises the need for government intervention to make renting more affordable and boost supply in the private rental market.
In conclusion, while areas like Sandbanks are witnessing unprecedented growth, the overall UK property market presents a complex and varied landscape, shaped by regional dynamics, economic factors, and evolving buyer preferences.