HOUSE prices increased by 0.7 per cent in Dorset in October, new figures show.

The boost contributes to the longer-term trend, which has seen property prices in the county achieve 3 per cent annual growth.

The average Dorset house price in October was £295,526, Land Registry figures show – a 0.7 per cent increase on September.

Over the month, the picture was similar to that across the South West, where prices increased 0.4 per cent.

Over the last year, the average sale price of property in Dorset rose by £8,500 – putting the area 26th among the South West’s 32 local authorities for annual growth.

Winners and Losers

Owners of detached houses saw the biggest improvement in property prices in Dorset in October – they increased 1.1 per cent, to £436,199 on average. Over the last year, prices rose by 4.1 per cent.

Among other types of property:

  • Semi-detached: up 0.7 per cent monthly; up 3.6 per cent annually; £286,803 average
  • Terraced: up 0.7 per cent monthly; up 3.3 per cent annually; £230,835 average
  • Flats: down 0.2 per cent monthly; down 0.9 per cent annually; £163,963 average

First steps on the property ladder

First-time buyers in Dorset spent an average of £231,000 on their property – £5,100 more than a year ago, and £28,000 more than in September 2015.

By comparison, former owner-occupiers paid £330,700 on average in October – 43.2 per cent more than first-time buyers.

How do property prices in Dorset compare?

Buyers paid 7.7 per cent more than the average price in the South West (£274,000) in October for a property in Dorset. Across the South West, property prices are high compared to those across the UK, where the average cost £245,000.

The most expensive properties in the South West were in the Cotswolds – £417,000 on average, and 1.4 times as much as in Dorset. The Cotswolds properties cost 2.3 times as much as homes in Plymouth (£183,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea, where the average October sale price of £1.3 million could buy 14 properties in Burnley (average £93,000).

Factfile

Average property price in October

  • Dorset: £295,526
  • The South West: £274,319
  • UK: £245,443

Annual growth to October

  • Dorset: +3 per cent
  • The South West: +6.1 per cent
  • UK: +5.4 per cent