Property investment stats for Dorchester (Dorset), South West

• The average rental yield of 5.9% is attractive for investors seeking steady income, especially as the top-performing area delivers the same yield.
• The capital growth over one year is 2.5%, and over three years is 7.1%, which signals consistent, if unspectacular, appreciation.
• Median asking rents for a 3-bedroom house (£1,425) and a 2-bedroom flat (£1,275) are strong relative to local incomes, supporting the investment case for buy-to-let.

• The population is heavily skewed towards older residents, with the over-60s in the 91st percentile, which could limit long-term rental demand growth from younger tenants.
• The area is not a hotspot for families or young professionals, with both groups well below the national average, potentially capping future price growth.
• Liquidity is moderate rather than high, with properties taking an average of 55 days to sell and a median discount of £5,000 (the typical achieved discount).

Looking ahead, Dorchester’s property market is likely to remain stable given its demographic profile and the balanced price-to-income and rent-to-income ratios. Investors should not expect rapid price rises, but the steady capital growth of 2.3% per year over the last three years demonstrates resilience.

Rental yields are likely to stay attractive at around 5.9%, especially with the top-performing district matching this average. While demand from young renters or families may remain subdued, the area’s appeal to retirees and single occupiers should help underpin values and rental demand.

Overall, Dorchester offers a solid, income-focused investment environment with modest growth prospects and relatively low volatility.