Sandbanks, long considered Britain’s most exclusive coastal enclave, is facing a sharp slowdown in demand as punitive tax changes under both the Conservative and Labour governments send high-net-worth buyers fleeing to tax-friendlier destinations abroad.
The Dorset peninsula, which once topped global lists alongside Monaco and Palm Beach, is experiencing a marked dip in buyer interest – with properties stagnating on the market and developers pulling out, experts warn.
According to new analysis and agent testimony, local demand has plummeted since April, when local authorities gained powers to double council tax on second homes. The move was introduced under the 2023 Levelling Up and Regeneration Act by the previous Conservative government but has been backed and implemented by Keir Starmer’s administration. The Liberal Democrat-run Bournemouth, Christchurch and Poole Council, which oversees Sandbanks, is one of more than 200 to adopt the hike.
Lola May Massingham, CEO of Prime Coastal Property, said demand has fallen noticeably. “There’s a lot of property on the market and not enough buyers. Labour’s double rates are really not helping,” she said. “Buyers are nervous. There’s no good news coming from the government, so people are holding off — or looking to places like Dubai and Portugal instead.”
Average house prices in Sandbanks, where waterfront homes can fetch up to £8 million, are now down 3% compared with two years ago, according to a recent Lloyds report. The area, previously buoyed by the post-pandemic rush for second homes, is now struggling to maintain its elite cachet.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
