Sandbanks in Poole, Dorset, has been named the price hotspot of 2023, beating Hulme and South Moor for the number one spot.
The affluent neighbourhood of Sandbanks has seen average asking prices surge by 20% over the past year from £.1.59m to £1.9m, according to property site Rightmove.
Hulme in Greater Manchester comes in second, after seeing a price increase of 16% last year. The average asking price for a property here is £275,886. South Moor, in County Durham takes the third spot when it comes to price hotspots, with prices surging 15% to £106,671.
Steve Isaacs, director at Luxury and Prestige Realty in Poole said: “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.”
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Chobham, in Surrey, is not part of the top three but it is the second most expensive town on this list. Properties in this idyllic village command asking prices of around £1m.
Overall, national average asking prices at the end of 2023 were 1.1% lower than at the same time in the previous year.
The figures also show that renters are increasingly looking to leave the city in search of more affordable homes.
Across ten major cities, 54% of renters looking for a new home were looking to move outside of the city they lived in rather than within it in 2023.
Birmingham appears to be leading this city exodus, with 57% of renters making enquiries to leave the city.
Bristol (53%) and Edinburgh (49%) have also seen renters explore new areas as a severe shortage of properties and fierce competition to secure the homes that are available mount.
Tim Bannister, Rightmove’s property expert said: “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.
Read more: UK house prices rise for third month as mortgage rates ease
When it comes to the quickest turnaround, Rosyth in Dunfermline, Fife is 2023’s is the winner, with the average home for sale finding a buyer in just 17 days.
The quickest local markets are typically in Scotland. The average time to find a buyer is 66 days in Great Britain, but 37 days in Scotland.
Outside of Scotland, Redfield in Bristol was the quickest market, with homes finding a buyer in an average of 25 days.
Rightmove data also suggested that buyers want a garage and more space, while renters want a pet and bills included.
With cost of living concerns still running high, “bills included” was the second most searched-for term among renters in 2023, followed by “furnished”.
Faced with higher mortgage rates, there were signs that buyers were looking to get more space for their money, with “annexe”, “acre”, “garden” and “land” also popular searches.
“Whilst a garden, garage and more land remain high priorities for those searching for a move, we also know from our research that more intangible factors are key to home-hunters when deciding on a move. A strong sense of community, friendly neighbours and an area people can feel happy in are some of the most important things movers are looking for,” Bannister added.
Watch: Average UK house price ended last year £4,800 higher than at end of 2022
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