Confidence Returning to the Market
There is a noticeable shift as we move into the spring season.
After a period of speculation and policy uncertainty last year, during which some homeowners chose to pause, 2026 has begun with renewed energy. With no major legislative changes looming and the Bank of England maintaining the base rate at 3.75% (as of 5 February 2026), the hesitation that characterised parts of 2025 is steadily easing.
According to Rightmove, asking prices rose by 2.8% in January, a record increase for that time of year. Sellers are clearly responding to improving sentiment, and buyers are engaging with confidence. Encouragingly, February and March are historically the strongest months to launch a property, offering the highest likelihood of achieving a successful completion, according to Rightmove. This mirrors the early signs of spring momentum we are seeing here in Dorset.
Stability Should Not Be Mistaken for Weakness
The latest ONS figures show house prices increased by 1.7% across England in the 12 months to January. In the South West, growth was more modest at 0.3%.
Some may describe that as flat. I see it differently.
Growth of 0.3% across our region reflects a market that has recalibrated rather than retreated. Dorset is behaving as expected for a mature and desirable market – steady rather than volatile. During periods of wider economic adjustment, that kind of consistency is often a strength.
Take a longer view, and the consistency becomes evident. Capital values have increased by approximately 15% over five years and close to 40% over the past decade. Property may not always deliver headline-grabbing spikes, but it offers something far more dependable. It is tangible, it is useful, and in many cases, it becomes the backdrop to the most important chapters of our lives.
Strong Demand for Well-Positioned Homes
We are operating in a market where precision matters.
Buyers are engaged, but they are considered. They have choice. Pricing accuracy from the outset is essential, and skilful negotiation is fundamental in securing the best possible outcome. And homes that launch correctly, both in positioning and presentation, are achieving strong levels of interest.
The supply of property has improved compared with the constrained conditions of last year, giving buyers greater selection. New buyer registrations across our network are broadly in line with last year, yet viewing numbers are up 25% year-on-year. Currently, we have an average of 18.1 buyers registered for every property available, up from 16.5 a year ago.
Lending Conditions Are Improving
Uswitch reports that the average two-year fixed rate (75% TV) across the major lenders now stands at 3.94%. The return of mortgage rates beginning with a three is psychologically significant and has helped restore confidence among buyers who were waiting for greater certainty.
Mortgage approvals dipped in December 2025, the latest available data, but this appears to reflect short-term caution rather than structural weakness. With more competitive lending products emerging and the base rate held steady, the conditions for renewed borrowing activity are increasingly supportive.
A More Strategic Conversation for Landlords
The lettings market tells a complementary story. Average UK private rents increased by 3.5% in the year to January 2026, with the South West outperforming the national average at 4.9%. Demand for well-presented rental homes remains strong, supported by a shrinking number of available properties across the region.
That reduction in supply is due, in part, to some landlords choosing to exit the market. Taxation changes and increasing compliance requirements have prompted many property owners to reassess whether to hold, sell or restructure their portfolios.
This is precisely why we introduced the DOMVS Asset Review. This is a structured, impartial overview designed to help property owners compare the sales and lettings routes side by side, grounded in current data and realistic assumptions. With input from specialist advisers, we provide up-to-date capital values, projected returns and a light financial and tax review so decisions are made with clarity and confidence.
Looking Ahead
Most forecasts suggest modest growth of between 1% and 5% during 2026, with no credible indication of a downturn. The prevailing narrative is one of resilience, gradually improving affordability and strengthening confidence.
Dorset remains one of the most desirable counties in the UK. That fundamental appeal has not changed.
For those considering a move, a purchase or a strategic review of their portfolio, this is a market that rewards informed advice, careful positioning and thoughtful decision making.
As we enter the spring season, the signs are encouraging. All indicators point towards a measured and confident market ahead for Dorset property, and we’re excited to be at the heart of it.
If you are considering a move this spring or reviewing your property portfolio more broadly, we would welcome a conversation. Clear advice, with market evidence, can make all the difference to your property return.
