Monte Carlo, Basel and Palm Beach... and Sandbanks: How millionaires' playground in Dorset is the FOURTH most expensive place in the world to buy a house

Sandbanks has become the fourth most expensive place in the world to buy a home – beaten only by Monte Carlo, Basel and Palm Beach, MailOnline can reveal today.

The affluent neighbourhood on the Dorset coastline already had a well-established reputation for being one of the most expensive places in the world to buy property.

But latest figures from Zoopla show the millionaires’ playground had a median sold price of £1.25million last year – with the most expensive being £13.5million in March.

Just three cities had a higher median in 2023 – Monaco’s Monte Carlo at £4.24million, Basel in Switzerland at £1.8million and Palm Beach in Florida at £1.33million.

Sandbanks was above Zurich in Switzerland at £1.1million; San Francisco and Hong Kong at £1million; and Los Angeles, Singapore, Tel Aviv and Toronto at £900,000.

The Sandbanks peninsula is known for having some of the most expensive prices in the world

New data from Rightmove identified where asking prices have risen the most around Britain

Other cities that it beat included London, Amsterdam, Tokyo, Sydney, New York and Miami – based on a top 20 compiled by US financial website Money Inc last month.

The data emerged as Sandbanks was crowned Britain’s property hotspot, with asking prices increasing by an eye-watering 20 per cent in a single year.

New figures from Rightmove show that the average asking price in Sandbanks was an eye-watering £1,909,943 in 2023, compared to £1,586,349 in 2022.

This compares to the £355,177 current asking price for all of the UK, which was 1.1 per cent lower at the end of 2023 than at the same time in the previous year.

Rightmove said there were different dynamics of supply and demand around the country, with some areas such as Sandbanks seeing a big increase.

Also in the top ten hotspots list were Hulme in Greater Manchester, Hockley in Birmingham and Brotton in Cleveland.

Estate agents in Sandbanks confirmed it had been a ‘successful’ year in the area.

Steve Isaacs, of Luxury and Prestige Realty in Poole, said: ‘It’s been a very successful year selling prime waterfront properties on Sandbanks, which have outperformed the wider market.

‘In fact, the Sandbanks market has continued to strengthen throughout the year. The strong market has been due to a limited supply of suitable properties combined with an increase in demand.

‘The lifestyle element is not to be underestimated, and the allure of living on the waterfront continues to attract buyers from out of the area.’

The picturesque location has attracted residents including celebrity chef Rick Stein and former football manager Harry Redknapp.

In March, self-made multi-millionaire Tom Glanfield set a new record for the price paid for a property on Sandbanks when he spent £13.5million on a 117-year-old bungalow.

Sandbanks is an affluent neighbourhood on the Dorset coastline that is home to millionaires

Local businesses on Sandbanks in Dorset which is home to many wealthy residents

Many properties on the exclusive peninsula of Sandbanks in Dorset have a beautiful sea view

But in December it emerged that the 45-year-old wanted to flatten the colonial-style home that occupies the biggest waterside plot in the area.

He now intends to spend more than £7million building a luxury, eco-friendly home that will be an ‘exceptional piece of architecture’ to ‘set a benchmark’ for the neighbourhood.

But last week it was revealed families living on Sandbanks are fearing for their lives because of an invasion of boy racers driving souped up cars.

Locals said the areas was being used as a racetrack where petrolheads come screeching down the neighbourhood almost every night.

Residents pull together the money for a speed camera for the 30mph road but were thwarted by the council when officials said it would be too costly to run.

People living there now want a larger police presence to put a stop to speeding cars spoiling their idealistic and peaceful lives amid a recent horror smash in which a 17-year-old girl was left with ‘serious injuries’.

Meanwhile Rightmove also looked at other property hotspots in Britain – including Hulme in Greater Manchester, where the average asking price reached £275,886 – 16 per cent higher than a year earlier.

Rosyth in Dunfermline, Fife, was identified by Rightmove as 2023’s fastest market, with the average home for sale finding a buyer in just 17 days.

Sandbanks has attracted residents including Rick Stein and football manager Harry Redknapp

Some of the most expensive housing in the UK can be found on Sandbanks in Dorset

Sandbanks was today crowned Britain’s property hotspot by property website Rightmove

Rightmove also said the fastest local housing markets are typically in Scotland. The average time to find a buyer is 66 days in Britain but 37 days in Scotland.

Outside of Scotland, Redfield in Bristol was said by Rightmove to be the fastest market, with homes finding a buyer in an average of 25 days.

The Rightmove research went on to shed some light on the rental market in Britain.

It said a severe shortage of properties to rent, fierce competition to secure the homes that are available, and rising rental prices led more tenants to explore new areas outside of cities.

Across ten major cities, 54 per cent of tenants looking for a new a home were looking to move outside of the city they lived in rather than within it in 2023, compared to 51 per cent in 2022.

London is the most searched-for location, with searches ticking up very slightly on the previous year by 1 per cent.

In second place is Cornwall, even though searches there dropped by 18 per cent compared to last year.

Devon is in third place again, but rising to the fourth most searched for location is Glasgow, replacing Bristol as next in line for the most searched-for location for buyers.

Meanwhile, a garage tops the list of features buyers were searching for. And more space was a priority for buyers, with annexe, acre, garden and land making up the rest of the top five.

At the same time, tenants were more concerned about searching for a home that allows pets, and whether the home comes with bills included.

Their other top priorities were whether the rental home comes furnished, has a garden, or has a garage.

Tim Bannister, of Rightmove, said: ‘Even in the more muted market of 2023, many areas across Britain saw an increase in asking prices last year.

‘Many traditionally popular areas maintained their allure among buyers, while cheaper areas were also high on the list for buyers last year with affordability stretched.

‘While a garden, garage and more land remain high priorities for those searching for a move, we also know from our research that more intangible factors are key to home-hunters when deciding on a move. A strong sense of community, friendly neighbours and an area people can feel happy in are some of the most important things movers are looking for.’

Nathan Emerson, of trade body Propertymark, said: ‘House prices in 2023 were no doubt impacted by inflation and rising interest rates, yet it is positive to note that many parts of the country are witnessing sales surges compared to others.

‘It is clear that renters are craving affordability, which isn’t being helped by landlords needing to increase rents in part due to increased mortgage costs and the effects of taxation.

‘Propertymark would like to see the UK Government continue making renting more affordable by making investment in the private rental market more attractive through affordable taxes and the ability to offset mortgage costs, which in turn will help boost supply.’