Property Market Steady
(but Budget factors in warning flags)
For the Residential Scene 2024 has seen the return of a “traditional sale market “with a good steady level of purchaser enquiries leading to an increased level of sales with modest increases in prices.
Next year will see first time buyers more active in the first quarter prior to the effective increase in stamp duty. More unpredictable is the economic effect of key aspects of the recent budget (higher government borrowing / taxes on business) including a poorer interest rate outlook and reduced business and consumer confidence. A cautionary view is that the residential market will remain steady with perhaps modest/slight price increases
Commercially the property market in Dorset has also remained steady with the exceptions seen nationally of extreme difficulties in the high street for Retail and Hospitality. The Commercial scene should remain stable except for the struggling sectors mentioned who will suffer enormously from the NI penalty taxes of the budget and the inevitable costs increases of the minimum wage which disproportionally effect those sectors
Both the residential and commercial sectors will benefit from the potential growth of the larger block Build to Rent market (BTR). This sector is on a growth trajectory in Dorset as traditional 2nd home buy to let investments are hugely penalised by past government tax changes and especially by the new 5 percent stamp duty penalty.
Photo: David Errington, CEO, Goadsby