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The average property rental price in Guernsey has barely changed this year - having hit an all time high at the end of last year.
The latest data released by the States shows that rental prices at the end of March were just 0.5% lower than they were three months earlier.
However, rental prices climbed 7.5% during 2023 and overall they are currently 43.9% higher than they were five years ago.
The mix adjusted average rental price for Local Market properties during the first quarter of this year was £1,911 per calendar month.
The data collated by the States does not specify what size property would be available for that price. The data does show that prices have steadily increased across all size properties over the past decade.
Pictured: The mix adjusted average rental price for Local Market properties during the first quarter of this year was £1,911 per calendar month.
Lettings Manager at Savills, Annie Le Prevost said rental prices appear to be stable now, but there is still strong demand with potential tenants looking for properties.
“Much like residential sales, the lettings market has shown recent signs of picking up for summer," she said. "The year started out strong, with a slight lull in March/April – perhaps triggered by the Easter Bank Holiday and people taking extended breaks.
"That being said, demand remains incredibly high – driven by a continued lack of stock, while prices now appear to be relatively stable, and not decreasing to any great extent, especially since the start of the year. Of the properties that are available, there is a good mix, ranging from one and two-bedroom apartments to three and four-bedroom family homes. This is always a good sign and hopefully bodes well for the months ahead. With interest rates coming down slightly, it may also encourage first-time buyers in rented accommodation to take a step onto the property ladder, which could well free up rental properties at the lower end of the market.”
Richard Hemans, IoD Guernsey’s lead on economics agreed that while the increases in rental prices are tapering off, prices are still very high. That has an impact on affordability for tenants.
"House prices are falling but rental prices are increasing, which is making home ownership marginally more affordable compared to renting," he said.
"It is still concerning, however, that rent consumes 55% of earnings. The less well-off will tend to rent a property rather than own one so the unaffordability of rent is a major social policy concern."
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