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House Prices May Be Set For 5% Rise...

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An article in the Evening Echo tonight on page 3...

...followed on page 5 with 'Far more flats than houses being built'...

...what effect will this have on those goldmines!!??!

Article page 3:

House prices may be set for 5% rise

by Lynn Jackson

DORSET'S homeowners are still sitting on a goldmine.

House prices in the county remain the highest in the South West, despite a fall in values over the past year. An average house will now set you back nearly £210,000, well above the UK average of £166,000.

Prices peaked in 2004, when the cost of an average home in Dorset reached a remarkable £220,000.

But David Slade, chairman of Bournemouth and District Estate Agents believed the market is on the turn and could grow as much as five per cent this year.

"We started the year on a positive note and the pressure on prices seems to be upwards rather than down," said Mr Slade.

"The only area where there has been any real measurable drop is perhaps apartments in Bournemouth and the first-time buyer market up to around £150,000, which probably peaked 12 months ago."

He added: "But the market has been relatively stable. It's not been like the previous crashes."

Rather than house prices dropping, he said it was the number of sales that had been falling.

"Last year, the volume of sales was probably the lowest for some years," said Mr Slade. "But that means there's a lot of pent-up demand which will hopefully increase sales this year."

Property specialist Colliers CRE also believed the housing market could be on the rise again, as the county attracts a big share of the 25,000 newcomers moving into the south-west every year.

Spokesman Ian Francis said: "Many thousands of new homes are required in the region to cope with the forecast growth of nearly 660,000 over the next 15 years."

But with more people needing homes and house prices set to take another turn upwards, affordable housing will become even more important.

A report in December 2004 found that Bournemouth was facing a huge lack of affordable housing.

At present, the council can demand that developers provide affordable housing where building schemes have 15 homes or more.

But Bournemouth council cabinet member Cllr Bill Mason said progress had been slow, with developers now tending to submit plans for schemes with only a few units.

"It is a problem. We seem to be seeing a lot of smaller, fragmented developments now," he said.

Article page 5:

Far more flats than houses being built

by Melanie Vass

BOURNEMOUTH is experiencing a flat explosion, with apartments accounting for 92 per cent of all new properties built in the past year.

Figures reveal that just 66 new houses and 21 bungalows were built during 2004-2005 compared to 1,014 new flats. In Poole, flats accounted for 67 per cent of all new properties with houses and bungalows making up the other 33 per cent.

The trend is being attributed to Government guidelines that encourage high density developments.

But with south east Dorset expected to accommodate 42,000 new homes over the next 20 years, there are fears that people's quality of lives will suffer if the trend continues.

Bournemouth Independent Cllr Ron Whittaker, who recently proposed a move that would require developments on council land to be of a high-quality design, said: "It's flats, flats, flats at the moment - it's frightening.

"We desperately need more family accommodation with small gardens but we are in a no-win situation. On one hand planning guidance refers to the quality of the environment but on the other, we're told that we can't turn down developments because they are high density in nature. It's town cramming gone mad."

The last year in which house building outnumbered flat building in Bournemouth was 1994-1995 when the Littledown and north Bournemouth estates were completed.

Census information shows how the gap between the number of flats and houses in Bournemouth is narrowing. In 1991, 61.5 per cent of the dwellings were houses and 37.3 per cent flats. By 2001, the proportions were 56.3 per cent and 41.6 per cent.

Even some property developers now think the current level of flat building is unsustainable. Savills, representing the Canford Estate, has told Bournemouth planners: "The current trend of providing small flats on windfall sites fails to meet the space aspirations and expectations of many people, especially families."

And this has been echoed by David Wilson Homes, who said the past six years had seen a "disproportionate provision" of flats and there was a real need for traditional housing schemes.

<<<Comment's please>>>

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"pent up demand" I like that one,why does he think people are waiting,if the demand is there why don,t they go out and buy? it could not be because property is too expensive by any chance could it? :rolleyes::rolleyes:

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Don't let TTRTR hear you say that... :o

Pent up demand is going to save his portfolio "value" from dropping faster than the average pair of knickers in Basildon on a Friday night!


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I am very close to the Dorset market have been to 25 years. If you take David Slades comments in the context of his position they are very enlightening. His assesment is very honest, even if it is all couched in politicaly coded spin/language. What he is acctually saying is, 2005 was a terrible year and 2006 will be worse.

Pablo Silver or Lead?

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