Property Prices
The latest data suggests the market is on a positive trajectory. While UK house price annual inflation has been slow over recent months, the ONS has provisionally estimated a 1.8% increase in the 12 months to March 2024; the first annual increase since June 2023. Rightmove’s June report stated an overall 0.6% annual price increase to May 2024, with properties at the higher end of the market up 1.3%. Nationwide has stated a 1.3% annual rise and a 0.4% monthly rise to May 2024.
In Dorset, property price growth is in line with UK-wide data, and despite the short-term softening of values, prices have increased by 24% in five years, and 57% in 10 years. Interestingly, when you look at the higher end of the market – specifically the top 10% – these increases are even higher at 34% and 67% respectively (as of June 2024).
The Impact of the General Election on the Buyer Profiles
The announcement of an upcoming election has so far not had a noticeable impact on the Dorset property market. In May this year, DOMVS conducted 21% more market appraisals compared to May 2023, indicating sustained interest from potential sellers despite political uncertainty. Our website saw a 53% increase in new users in May compared to the same period last year, and buyer registrations increased by 6%. The heightened interest in property listings has resulted in a 16.3% increase in viewings, proving that demand is robust and buyers are motivated.
Interestingly, some homeowners are choosing to let their properties on a short-term basis until the election has passed, while also capitalising on the 8-10% annual rise in rents, however, for the majority, it is business as usual, with typical buying and selling activity continuing unabated.
Forecast
According to GfK’s Consumer Confidence Index in May, there has been a five-point increase for personal finances and a four-point increase for the UK economy, pointing to resilience in the face of affordability pressures. The increased activity in market appraisals and website traffic suggests that both sellers and buyers are confident in the market’s stability, dispelling any notions of a ‘pre-election pause’ and we don’t see house prices being affected in the coming months.
