Summer Market, 2025

A Local Perspective on the Market

The housing market remains one of the most discussed topics in the UK, but speaking of “The Housing Market” as if it were one single entity is misleading. In reality, it’s made up of countless micro-markets — shaped by geography, property type, and buyer needs.

At GP Weston, our expertise lies in the property markets of South Somerset and North Dorset, from family homes in Sherborne to country houses near Bruton. While national headlines give a broad picture, our focus is always on hyper-local trends to provide clients with relevant, actionable advice.

Why National Indices Can Mislead

The most quoted indices all have limitations:

Halifax & Nationwide – Based on mortgage applications, so they exclude cash buyers.
ONS House Price Index – Uses Land Registry data but lags by 6–9 months.
Rightmove & Zoopla – Track asking prices, which are often inflated as agents compete for instructions.

This means national data rarely reflects the market as it feels today in Somerset and Dorset villages. Instead, we rely on real-time measures: new listings, sales agreed, and available stock, backed up by our on-the-ground experience as local estate agents.

Market Cycles: The Long View

Over time, the property market typically follows a cycle: 7–8 years of growth, followed by 2–3 years of adjustment. Around 1–1.2 million people move each year, most due to necessity (growing families, relocations, retirement). Life events eventually outweigh uncertainty, which is why demand always re-emerges.

Inventory Growth and Buyer Behaviour

Following the sharp rise in mortgage rates after the 2022 mini-budget, stock levels have risen dramatically. Available properties increased from just over 700 to more than 2,000 by June 2025.

As expected, summer brought a seasonal lull, with fewer new listings and some properties rested from the market. But history shows September and October typically bring a surge of activity as sellers aim to move before Christmas.

Meanwhile, sales agreed have stayed steady at around 200 per month. The increase in supply has led to two clear outcomes:

Downward pressure on prices – sellers competing harder for buyer attention
Longer time on market – buyers have more choice and less urgency

In this climate, accurate pricing, strong presentation, and proactive estate agency support are critical.

Which Price Points Are Moving?

Our analysis of Rightmove data (June–August 2025) shows:

£150,000–£200,000 – the busiest segment, with 31% of properties selling
£400,000–£650,000 – improved activity compared to spring, likely helped by base rate cuts
£2m+ market – the quietest, with only 6% selling; though sellers here often have equity and aren’t under pressure to move

This reflects what we’re seeing locally: strong demand for affordable family homes in Somerset and Dorset villages, steady mid-market activity, and a slower but stable luxury property market.

Bedrooms and Property Types

1–2 bedroom homes – Stronger activity over summer, driven by buyers less tied to school holidays.
3–4 bedroom family homes – Quieter during July and August, but expected to rebound in autumn.
Bungalows – The strongest-performing type. Dorset and Somerset’s older demographics mean single-storey living is popular, often bought with cash, making them resilient to higher borrowing costs.

Detached homes dominate in rural Somerset and Dorset, reflecting the space buyers move here for.

Local Factors and Seasonality

The Somerset and Dorset property market is shaped by more than just numbers. Lifestyle trends play a big role:

Families look for schools in Sherborne, Bruton, Street and surrounding villages
Downsizers seek bungalows and cottages near amenities
Relocators from London and the South East are drawn to luxury country houses in Dorset and Somerset

Over the summer, the family-home market slowed as parents prioritized holidays. Buyers less tied to the school calendar — first-time buyers, downsizers, and cash purchasers — have been more active.

Political and Economic Backdrop

Speculation about government policy has added uncertainty. Proposals to cut stamp duty or introduce an annual property tax on homes over £500k could cause hesitation:

Buyers under £500k may delay to see if they benefit
Sellers above £500k may wait to assess the impact

But history shows that necessity-driven movers (families, job relocations, retirees) will keep the market turning regardless.

What This Means If You’re Selling

With buyers more selective, sellers need to adapt:

Price realistically – Overpriced homes are twice as likely to need reductions, and Rightmove data shows they are far less likely to sell.
Present well – Homes that look their best online always attract more viewings.
Choose the right agent – One who combines accurate pricing, strong marketing, and deep local knowledge of Somerset and Dorset.

Conclusion

This is the first year we’ve broken down the local market in detail by price band, property type, and bedroom count. It confirms what we’ve seen first-hand: Somerset and Dorset remain resilient, with steady demand for realistically priced homes.

At GP Weston, we specialise in matching buyers with homes across Sherborne, Bruton, Dorchester and the wider Somerset and Dorset countryside — from bungalows and family houses to luxury rural properties.

📞 If you’re considering selling or buying, we’d be delighted to provide tailored advice. Contact GP Weston, your local estate agents in Somerset and Dorset, for a confidential appraisal.

To view the full report:- https://www.gpweston.co.uk/wp-content/uploads/2025/09/Summer-Market-Report.pdf