Borough shrugs off property market gloom with sale prices on the up
By The Editor 23rd Apr 2023
House sale prices are ticking up across Richmond borough, putting the local market at odds with the national picture.
Nationally, the average sale price fell each month from December through to February, according to new figures from the Office for National Statistics (ONS) and Land Registry.
By contrast, the figures for Richmond borough show that average sale price rose from £743,271 in December to £749,848 in January and then £760,775 in February.
The ONS figures are less current than other property market studies, however they are the most accurate as they reflect the prices paid by buyers..
The borough faces a shortage of large family properties and it is this sector of the market that remains the most sought-after.
A breakdown of the figures by property type show:
* Average sale figure for detached homes hit an all-time high of £1,708,978 in February - up almost on £30,000 on January.
* Average sale prices for terraced homes was £874,260 – up by £12,000 on January.
* Average sale price for flats and maisonettes was £494,284 – up by just over £7,000 on January.
Edward Adler, Associate in Knight Frank's Richmond office commented: "As we move into the Spring market we are seeing more of the best in class properties coming to market.
"Buyers are becoming more decisive, with many planning to secure a property before the summer months and the new school term commences in September, so now is a great time to maximise the value of your home if you're looking to sell."
Local property expert, Stan Shaw, of Mervyn Smith & Co, who speaks on market issues for the Royal Institution of Chartered Surveyors, said the ONS figures reflect the experience of estate agents in the borough.
He said: "After the initial aftershock of the Truss/Kwarteng budget, buyers seemed to regain some confidence and there has been little evidence locally of prices seriously falling.
"The group most challenged so far by interest rate rises are first time buyers who typically have the highest loan to value. They may not be abandoning buying altogether, especially when local rental values are rocketing, but they may adjusting to changed circumstances and accepting they might be buying a one bedroom rather than a two bedroom flat.
"Further up the food chain where buyers have equity from an existing property, which may have also risen markedly in value over recent times, or they may be porting an existing mortgage at a favourable rate, there is less secular reason for house prices to fall.
"There are other drivers for these groups such as buying a house in a particular school catchment at a time when the long term cost of private education may be unaffordable.
"I think also that in more chastening times in the housing market there is typically a 'flight to quality. '
"Well established residential areas like Richmond and Kingston drop less than non-prime areas which might have risen as all boats do on a rising tide, but then can't keep afloat when the tide recedes."
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