Sandbanks was ranked as the UK's price hotspot of 2023, according to data from Rightmove.

The neighbourhood in Poole saw the average asking prices for houses increase the most in the UK compared to the previous year.

It was up by 20% compared to 2022, from £1,586,349 to £1,909,943.

Overall, national average asking prices at the end of 2023 were actually 1.1% lower than at the same time in the previous year.

Great British Life: Sandbanks asking prices were 20 per cent higher in 2023 than in 2022Sandbanks asking prices were 20 per cent higher in 2023 than in 2022 (Image: Stephen Bath)

Steve Isaacs, Director at Luxury and Prestige Realty in Poole says: “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 under-estimated, and the allure of living on the waterfront continues to attract buyers from out of the area.”

What were the UK's price hotspots for 2023?

According to the research from Rightmove the UK's price hotspots for 2023 were:

1. Sandbanks, Dorset - average asking price up by 20% (£1,909,943)

2. Hulme, Greater Manchester - average asking price up by 16% (£275,886)

3. South Moor, County Durham - average asking price up by 15% (£106,671)

4. Chobham, Surrey - average asking price up by 14% (£1,062,483)

4 Walsgrave, Warwickshire - average asking price up by 14% (£257,320)

Tim Bannister, Rightmove’s property expert said: “Even in the more muted market of 2023, many areas across Great Britain saw an increase in asking prices last year.

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"Many traditionally popular areas maintained their allure amongst buyers, whilst cheaper areas were also high on the list for buyers last year with affordability stretched.

“Whilst 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.”