THE fire warning for Richmond residents has been downgraded to watch and act but residents are still warned to be on alert.
An emergency alert warning of extreme bushfire risk to the Southern Midlands township was issued about 2.30pm but was downgraded at 3.50pm.
The fire was reported near Middle Tea Tree Road about 2pm.
Houses on Middle Tea Tree Road and near Richmond are currently under threat.
The fire is still not controlled.
Embers, smoke and ash have been downgraded on Middle Tea Tree Road.
Tasmania Fire Service says Richmond Football Grounds is listed as a community safer place for residents who need to leave their homes.
However it is not being staffed as an evacuation centre.
Residents in the path of the fire are advised to leave their homes before the fire approaches, unless their home has been assessed as defendable by the Tasmania Fire Service.
More than 10 fire trucks are currently fighting the fire.