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House Price Index: your latest guide to the Richmond property market

As we all know, the property market can be a daunting and ever-changing landscape, making it challenging to keep up with the latest trends and developments. However, with our useful and informative updates, you can stay informed and ahead of the game.

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Understanding the House Price Index

Delving into the House Price Index (HPI) might initially seem complex, but fear not, as we’re here to make it as clear and accessible as possible. At its core, the HPI is a tool used to measure the changes in the price of residential properties over time. Compiled using data from property transactions, it serves as a barometer for the health of the property market, offering invaluable insights to buyers, sellers, and industry professionals alike. What sets the HPI apart is its comprehensive coverage and methodical approach to calculating average house prices. 

By taking into account various types of property transactions, including cash purchases and mortgages, the HPI provides a well-rounded snapshot of the market's dynamics. It's important to understand that the HPI isn’t just a single figure: it's a collection of data reflecting regional variances, property types, and market segments, giving a granular view of how different areas and property types are performing. Arming yourself with the insights from the HPI can help you make informed decisions, whether it’s determining the right time to buy or sell or understanding the broader economic trends affecting property values. It’s a powerful tool that demystifies market trends and empowers you with the knowledge to navigate the property landscape confidently.

The latest trends in the property market

The property sector is bouncing back after a challenging period marked by low consumer optimism tied to broader economic difficulties. End-of-May reports from Nationwide highlighted a recovery in UK house prices had seen a modest bounce back following a downtrend over two months, noting a degree of market “resilience”.

Additionally, HMRC statistics indicated a fourth consecutive monthly climb in property transactions in April, with a 5% increase to 90,430. This rise follows modest mortgage rate hikes at the year's commencement, which initially dampened market activity into March and April.

Year on year, the average UK home price witnessed a 1.1% uplift as of April, as per the latest Office for National Statistics House Price Index. The mean home value reached £326,248, whereas the price for newcomers to homeownership stood at £235,851. Prices for newly constructed homes kept outpacing those of existing ones, showing a 15.3% surge versus a 1.3% decrease.

What is happening in the Richmond Borough?

The average house price in Richmond in April 2024 was £726,000. This was slightly lower than the average of £740,000 in April 2023, representing a modest 2.0% fall. Across London, the average house price in April 2024 was £502,000, which was less than a year earlier (£522,000). This meant that, in April 2024, Richmond had the fifth highest average house price in London.

As is always the case, the market moves differently across different areas, different price brackets, and different property styles. The chart above very much reflects what we are seeing on the ground. The larger the property, the less demand or need to make a move. The current interest rates will obviously have a larger impact on bigger mortgages which may also be holding back activity in the detached sector.

Conversely, rents in the Richmond Borough have been increasing at a noticeable rate. The average monthly private rent in Richmond was £1,966 in May 2024. This is an increase from £1,829 in May 2023, representing a 7.5% rise. Whilst the cost of borrowing is a hurdle for most, first time buyers are still pushing ahead with plans to buy given the desire to get out of rented accomodation and on to the property ladder. This correlates with smaller properties in the chart above being less impacted by price falls than the larger homes.

If you are unsure about how the ever-evolving property market in Richmond, Twickenham & Teddington might affect your plans to move, talk to us at Bartlett & Partners. With over 30 years combined experience, our directors are personally on hand to guide you through every step of the process.

All data in this article is provided by ONS - Contains public sector information licensed under the Open Government Licence v3.0.

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