Island Life Magazine Ltd February/March 2011 | Page 22

Challenging
questions?
property

Island Life - February/March 2011

Island estate agent Richard Dickson admits it has been a tough few
months with prices in all sectors having 'bumped along the bottom'
People in all walks of life have found
the past year or so a particularly
testing and challenging time, with the
economic uncertainty causing much
concern.
Few businesses have
escaped, with
customers and
consumers
keeping a
close eye on
finances and
expenditure.
As a result
the housing
market is
just one

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area which slowed.
Island Life asked Richard Dickson, the
managing partner of leading Island
estate agents Hose, Rhodes, Dickson
how he thought the property market
would evolve over the next year.
Richard said: “It is difficult
enough to try and predict
what is likely to happen
to property prices over
a 12-month period in a
normal market. When
you are asked the same
question in the middle
of one of the worst
depressions in the last
100 years the answers
become somewhat

challenging.
“Prices across all sectors of the Island
market ‘bumped along the bottom’
in 2010. At the beginning of the year
the average price of a property on the
Island was £158,735, and the average
price in October 2010 (latest available
figures) was £157,808. Prices last year
fluctuated month on month between
£153,000 and £161,000.
“The number of properties sold
was also very disappointing. Only
an average of 176 units per month
changed hands (January to August),
which will probably equate to 2,200 in
the year. Completions usually increase
in December and I am sure 2010 will
not be an exception if our sales figures
are anything to go by.
“Notwithstanding my previous
comments, it is fair to say that the
special home in a desirable position will
always realise a premium price, whether
it be a detached house, character
cottage or an apartment in a seafront
location.”
Richard continued: “Property values,
in my opinion, are governed by four
main factors. They are: Supply and
demand; Availability of mortgage
finance; Affordability and Sentiment.
“In the spring of 2010 there was a
distinct shortage of properties, which
helped to underpin values. More
properties came to the market in the
autumn. However, there are already
signs that the flow of properties on to
the market is declining, which might

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