Exclusive enclave Sandbanks revealed as Rightmove’s 2023 price hotspot

Millionaire’s island, Sandbanks in Dorset, has been revealed as Rightmove’s 2023’s price hotspot with agents reporting that popular areas with fewer homes for sale also outperformed the wider market throughout 2023.

Average asking prices in Poole’s uber-affluent area (main picture) – which is home to a host of celebrities including former football manager and player Harry Redknapp – increased by 20% compared to 2022, from £1,586,349 to £1,909,943.

NATIONAL AVERAGE

Overall, national average asking prices at the end of 2023 were 1.1% lower than at the same time in the previous year. But with the UK being made up of thousands of different local markets, with different dynamics of supply and demand, some areas saw an increase in asking prices.

Steve Isaacs, Founder and Director at Poole-based Luxury and Prestige Realty, says: “It’s been a very successful year selling prime waterfront properties on Sandbanks, which have outperformed the wider market.

“In fact, the Sandbanks market has continued to strengthen throughout the year. The strong market has been due to a limited supply of suitable properties combined with an increase in demand.

“The lifestyle element is not to be under-estimated, and the allure of living on the waterfront continues to attract buyers from out of the area.”

SEVERE SHORTAGE

Elsewhere, a severe shortage of properties to rent, fierce competition to secure the homes that are available and rising rental prices led more renters to explore new areas outside of cities.

Across ten major cities, 54% of renters looking for a new a home were looking to move outside of the city they lived in rather than within it in 2023, compared to 51% in 2022.

London was 2023’s most searched for location again, with searches moving up very slightly on last year by 1%. Second place was Cornwall, where searches have dropped by 18% compared to last year.

Devon was again in third place but rising to the fourth most searched for location was Glasgow, replacing Bristol as next in line for the most searched for location for buyers.

MORE MUTED

Tim Bannister, Rightmove’s Property Expert, says: “Even in the more muted market of 2023, many areas across Great Britain saw an increase in asking prices last year.

“Many traditionally popular areas maintained their allure amongst buyers, whilst cheaper areas were also high on the list for buyers last year with affordability stretched.”

Nathan Emerson, Propertymark Chief Executive, adds: “House prices in 2023 were no doubt impacted by inflation and rising interest rates.

“However, it is positive to note that many parts of the country are witnessing sales surges compared to others.

“It is clear that renters are craving affordability, which isn’t being helped by landlords needing to increase rents in part due to increased mortgage costs and the effects of taxation.”

And he adds: “Propertymark would like to see the UK Government continue making renting more affordable by making investment in the private rental market more attractive through affordable taxes and the ability to offset mortgage costs, which in turn will help boost supply.”