The average house price in Dorset rose 11.2% on the year to March, according to the latest figures from the Office for National Statistics. This represents an increase from £311,105 to £345,976 in one year, meaning that on average house prices have risen by £34,871, the equivalent of £96 per day.
In Bournemouth Christchurch and Poole in particular, prices have risen by £31,897, an average of £87 per day. House prices in the area saw a 10.7% increase in the year to March, from £297,056 to £328,953. Average UK house prices rose 9.8% in the year to March 2022, from 11.3% in February 2022. The average UK house price was 278,000 £ in March 2022, which is £24,000 more than the same period last year.
Nathan Emerson, CEO of Propertymark, which represents estate agents, said: “The year-on-year increase shows that there is still a lot of momentum in the housing market, but we are now seeing some signs of cooling.
Read more: The cheapest homes sold in Dorset this year – including a flat just yards from Poole Boating Lake
Mr Emerson added: “But we keep coming back to the issue of tight supply which is the main driver of higher prices. Our member agents tell us this is still a problem and the number of people looking to buy continues to be well above the number of properties they have listed. This, coupled with incredibly low borrowing rates, is likely to sustain prices in the short to medium term.
Mike Scott, chief analyst at national real estate agency Yopa, also said monthly growth was expected to pick up in next month’s report, with the annual growth rate remaining around 10%.
He said: “House prices cannot continue to defy gravity forever, but the current shortage of homes for sale and high demand from people still reassessing their lives and priorities for the post-pandemic world will likely continue. to support prices for at least the remainder of 2022, and we do not expect nominal house prices to fall significantly this year.
“However, with inflation continuing to rise and the first signs that the housing market is beginning to calm down, it would not be surprising if we ended the year with house prices rising more slowly than others. price, and therefore falling in real terms.”
Between the start of 2016 and the end of 2019 there was a general slowdown in the growth of house prices in the UK, mainly due to a slowdown in the south and east of England . The start of 2020 saw a resumption of annual growth in the housing market before the coronavirus restrictions were put in place at the end of March 2020.
Recent price increases may reflect a range of factors, including some possible changes in housing preferences and a response to changes in property transaction taxes in countries. In July 2020, the Chancellor announced a suspension of tax paid on property purchases in England and Northern Ireland, with similar suspensions announced in Scotland and Wales.
In England and Northern Ireland properties up to a value of £500,000 would not be taxed, while the thresholds for Scotland and Wales were £250,000. This can allow sellers to charge higher prices as buyers’ overall costs are reduced.
The tax holiday for Scotland ended on March 31, 2021. It was extended until June 30, 2021 in Wales, while in England and Northern Ireland it was extended until the same date but the threshold will then decrease to £250,000 before ending in September. 30, 2021.
This may have explained a surge in demand in the middle of 2021, as annual price increases spiked to a 13.5% increase in the year to June 2021. There was a another weaker surge in September, with annual growth of 11.5% that month.
The East Midlands was the region with the highest annual house price growth, with average prices rising 12.4% in the year to March. This is up from an 11.6% growth rate in February.
The weakest annual growth in house prices was seen in London, where average prices increased by 4.8% over the year to March 2022, compared to 7.8% in February 2022.
You can stay up to date with the latest news near you with FREE Dorset Live newsletters – enter your email address at the top of the page or sign up for our newsletters here.
More from Dorset Live: