As the economy improves, confidence in the housing market is rippling out of central London, which has seen two and a half years of steady house price growth, and into parts of southern England. At county level, Land Registry data shows that average property prices in Dorset and Hampshire have remained flat over the year.
Yet average figures hide variations as greater price growth is concentrated in parts of the region within commuting distance of London. Hence Winchester’s prime market has performed more strongly than the discretionary markets in and around Canford Cliffs over the past year.
Although building levels are slowly creeping up again in some places, the effects of the economic downturn are still being felt by developers. The number of building completions remains well below peak levels across the region. Falls have been sharpest in areas which saw the most building at the height of the market.
Levels of new development across Bournemouth and Poole have dropped by 65.5% since 2007. In the run-up to the peak of the market, the delivery of new homes was above the local authority target. However, building rates have now fallen below target. The delivery of the Poole power station site is central to meeting local demand for homes. But there could be a potential shortfall of homes unless further new development comes forward.
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