Demand for New Homes on South Coast

There are signs of activity in the principal coastal towns. Big schemes central to meeting local demand Susan Emmett, from RICS, says: In Winchester, which has seen significant fluctuations in construction over the past decade, house building levels have fallen by 44% since 2007. Winchester continues to be the most buoyant new homes market, with both houses and flats selling to owner-occupiers and investors. We expect demand for new homes to continue. Winchester The Winchester market proved resilient during the downturn and remains strong as it benefits from price growth in the London market. Wealthy families relocating from the capital continue to settle in Winchester and the surrounding villages. The local new build market has seen greater interest from downsizers both from within and outside the area. Many are seeking to trade down from big country houses to more manageable properties. While some opt for lock-up-and-leave flats, houses with compact gardens remain most popular. As the availability of credit improves, about a quarter of new build apartment sales are going to buy-to-let investors and first-time buyers. Achieved prices for new-build homes have averaged £400 per sq ft. but may rise to £490 per sq ft. for something more exceptional. Coastal towns The growth in house prices and rise in market activity radiating out of London is failing to reach central parts of Bournemouth and Poole. Here, new development is dominated by more urban flatted schemes. In a part of the country where the number of people of retirement age is above the national average, purchasers are mostly local downsizers aged over 50 buying with cash or very small mortgages. A cold wet spring has not helped attract purchasers from outside the region. Buy-to-let investors and second home buyers are rare. Buyers seeking seaside boltholes for future retirement are scarce and more discerning. But the Government's Help to Buy scheme is serving to boost interest. Prices in Bournemouth and Poole average £332 and £314 per sq ft. respectively. In higher value neighbourhoods, such as Canford Cliffs, prices rise to £400 per sq ft. The luxury end of the market around Sandbanks continues to be driven by lifestyle buyers from outside the region seeking second homes. Although sales to discretionary purchasers at the top end of the market remain scarce, some buyers are still willing to pay over £1000 per sq ft. for the right property with harbour or sea views. Away from the waterfront, prices drop significantly. Although the Southampton property market was among the hardest hit by the recession, activity has picked up this year and building cranes have made a return to the skyline. The level of transactions are still less than half of peak levels and average prices are among the lowest in the region according to Land Registry data. West Dorset Urban regeneration is transforming central parts of Dorchester. Despite the slow economy, the £100 million Brewery Square scheme south of the town centre has seen strong off-plan take up. Achieved prices average £346 per sq ft. The contemporary look of the project contrasts with the traditional architecture at Poundbury, the urban extension to the west of Dorchester championed by The Prince of Wales. It is expected to be completed by 2025. As the number of new build completions in West Dorset dropped between 2007 and 2011, both schemes will play an important part in meeting housing requirements.