We spotted this interesting little report on the future of the Dorset Property Market on the Dorset Chamber of Commerce website recently and thought we would share it with you.

The past year has been pretty good for property owners in Dorset. Despite continuing political uncertainty and a general slowing down in the property market nationally, house process in Dorset have continued to rise and if you are thinking of moving to Dorset (or even moving within Dorset) then now would be a good time to make that investment as prices in many areas continue to rise.

In Bournemouth, prices rose by 3.73% over the last 12 months. And in Weymouth they rose by 1.9%. Speaking to the Chamber of Commerce, John Palmer, the Managing Director of insurance company, Coversure Poole said they have experienced an increase in demand for landlord insurance and home insurance over the past year which seemed to support the fact that the Dorset property market is continuing to thrive. He also suggested that the rental market will continue to boom:

“Local landlords have enjoyed excellent returns in 2019 as demand for rentals continues to rise. The average rent is now over £1,350 per month – a 5% increase on 2018 – and it’s a trend that looks set to continue given the scarcity of affordable housing.  Despite the tax changes in 2016, Which? Recently reported that buy-to-let could still be a good long-term investment, so we can expect more growth here.”

There has also been suggestion of a potential cut in interest rates in 2020, which could also be good news for homeowners and landlords; as John explains:

“The latest talk around the Monetary Policy Committee table was not of a rise in interest rates, but a further cut. 2 of the 9 members pushed for a cut fearing the impact of a hard or no-deal Brexit. Lower rates obviously mean cheaper mortgages and that’s good for both homeowners and landlords.”

He also suggests there might be a ‘post-election property boom’:

“In contrast to the elections post 2010 when cuts and austerity were all that were promised, the parties are now acting like lottery winners and promising to spend, spend, spend. The Tories have pledged to invest £22bn a year in public spending – including in social housing – … Such vast injections of cash could create jobs, stimulate private investment, see the promise of 300,000 new homes a year come true and allow more people to access the housing market.”

On top of this, the population in Dorset will continue to grow. The latest figures from the Office for National Statistics reveal that the population of the county has grown from 389,000 to 428,000 since 2000 – a rise of 10%. It is expected that this rate of growth will increase as more of the UK’s aging population seek to retire in Dorset, whilst the younger generation are starting to take interest in towns like Bournemouth, which was recently named as one of the top places in the UK to start a business.

John Palmer continues to remain very optimistic about the Dorset property market and suggests there is very reason for optimism. He concluded by suggesting that demand had proved resilient over the past year and if Brexit can be resolved amicably then he could see no reason why it would not continue to flourish this year.

So it certainly looks like there’s never been a better time to move to Dorset – are you planning your move? Get in touch today for a free no-obligation quote and find out how we can take the strain for you.