THE Olympic effect has seen Weymouth and Portland house prices surge in the last year.

Next summer’s home Games may still be eight months away but local estate agents say the borough housing market is already benefiting from the sailing events on home waters.

Latest figures from the Land Registry of England and Wales show that the average property price in Weymouth and Portland was £209,013 - up 6.1 per cent on last year’s figure.

Most of the rest of the county has also seen a rise in house prices.

At a time when property prices have slumped by 2.9 per cent nationally they have risen by 4.4 per cent in East Dorset, 1.8 per cent in Christchurch, 1.9 per cent in Purbeck and 3.7 per cent in West Dorset but North Dorset has witnessed a drop of 10.1 per cent.

The revelation that house prices have surged follows our article yesterday which showed price hikes to holiday properties may price the bucket and spade brigade out of Weymouth.

Tourists are calling for ‘fair prices’ in the resort next year and warn that tripling rent will deter traditional ‘loyal holidaymakers’ during the 2012 Olympic and Paralympic sailing events.

George Long, an associate at Savills, the estate agency behind Weymouth’s Admiral’s Quarter property development in Barrack Road, said: “Weymouth is going to be transformed by the Olympics.

“A huge amount of tourists and money are streaming in and that creates demand.

“It’s creating a little property hotspot along the coast.

“It’s not that it’s been overlooked in the past – it’s just that people haven’t realised what’s on offer. It’s a lovely town overlooking a glorious bay where the Olympic sailing will be.

“If the Olympics were happening in Poole or Bournemouth the same thing would happen. There’s a real word-of-mouth thing going on because Weymouth’s in the papers every week.”

He added: “We’ve certainly had a lot of interest in the Admiral’s Quarter development.

“We’ve only got four left and we’ve had buyers specifically phone up as a result of Olympic coverage.

“Weymouth is one of the few places outside London really benefiting from the Olympics.

“When the Olympics come there’s going to be a lot of exposure: lovely boutique shops will spring up and it could become a real sailing Mecca like Salcombe in Devon.”

Mr Long said the £90million overhaul of the borough’s roads, including the Relief Road, was a benefit as it had speeded up transport links and drivers could reach London in two-and-a-half hours.

Portland Town Mayor Ian Munro-Price and a director at Red House Estate agents in Fortuneswell, said while he had not seen a ‘6.1 per cent’ price rise on the island the Olympic countdown had bolstered sales.

He said: “In the Underhill area many more properties are being sold since the start of August, we’ve seen an extremely good property market and it’s coincided with the one-year-to-go anniversary.

“It’s made more buyers consider the area and we’ve sold a proportion of investment properties and homes.

“Buyers are still very canny and want to get a good deal but they’re more confident and prepared to commit to a purchase.

“We’re hoping that the publicity of the 2012 sailing events will make things better in the future.

“This area would be in a worse position if it wasn’t for the Olympics.”