Richmond property market overview
October 20th | 2022
Given the economic headwinds the local sales market has proven most resilient. Never has it been so important to value property correctly and listen to what clients are trying to achieve. It’s delicate balancing the shortage of supply, against lending rates having returned to pre financial crisis levels, along with inflationary pressures,
The naysayers would point to 2008, however things are quite different now.
Lenders are carrying far less bad debt and are far better capitalised, so will continue to lend, that was not the case in 2008. They turned off the lending tap whilst they scurried around, working out just how much bad debt they had to write off.
The Richmond sales market has seen relatively little price growth over the last eight years, compared to the eyewatering increases we witnessed from July 2005 to July 2007. A correction normally follows a price spike, which we have not witnessed in recent years.
Sales are still being agreed, at fair prices, perhaps without the frenzied froth, we witnessed post lockdown one.
Given how the PRS (Private Rental Sector) has been financially squeezed over recent years, we’ve seen a large number of Landlords exiting the market. This has led to a dramatic shortage of rental properties and has helped contribute to price increases locally of 10% – 20% in the last twelve months. This has been acutely felt in London, with those that formed part of mass exodus, returning in droves.
Contact Cantell and Co Richmond estate agents, for property advice or an up-to-date appraisal of your property.