The average cost of renting a property in Guernsey is edging closer to £1,800, despite dipping slightly over the summer months.
The latest data on Guernsey's property market has been published by the States.
It shows that the mix adjusted average monthly rental price for Local Market properties was £1,726 in the third quarter of 2022.
That is 5.0% lower than the average rental price was during the previous quarter but 7.9% higher than during the third quarter of 2021.
Pictured: Average rental prices dipped before increasing again over the past year.
The States measure property prices by using the 'mix adjusted' measure which is the average cost of purchasing a property including both realty (the bricks and mortar) and personalty (fixtures and fittings).
This method also 'weights' properties according to their type and the number of bedrooms so as to reflect the profile (or 'mix') of all the owner occupied and buy-to-let property units across Guernsey.
The Local Market mix adjusted average rental price is a measure of the average monthly cost of properties advertised for rent in Guernsey. Since the start of 2010, data on local market private rental properties has been regularly collected from web and classified adverts (including managed properties). It is now being provided by local IT company, Cortex Technologies Limited, who have developed an IT system to collect the data automatically, providing greater coverage and enabling the number of full time equivalents within the Data & Analysis team to be reduced.
The data for 2022 was published yesterday and can be read HERE.
Pictured: Rental prices are tracked across different categories of property.
The States data gives a breakdown of average rental prices across different categories of properties by both type and by the number of bedrooms.
The comparison provided between the third quarters of 2012, 2017 and 2022 shows the average prices of the component categories which, when combined with information on the island’s property stock, were used to calculate average, mix adjusted property rental prices. This confirms the popular view that average rental prices for all property types and numbers of bedrooms has increased over time.
Gill Mooney, leads the lettings team at Savills Guernsey. She said the 2022 quarter three figures are reflective of what has been happening on the ground.
“Professionals, corporate relocators and families are still driving demand – and good quality, sensibly priced properties remain highly sought after," she said. "But we’re certainly seeing less people looking when compared to earlier in the year."
Pictured: Gill Mooney, Head of Residential Lettings at Savills Guernsey.
As well as the number of rental tenants reducing, Ms Mooney said prices do fluctuate. She cited examples of some landlords who have amended their prices to reflect the pressures of the rising cost of living on tenants.
"This can often be seasonal – and it’s no surprise to see a slight slowdown over the summer – however I think the increase in the cost of living is making people think twice.
"We’ve had a couple of properties recently for example where landlords have decided to reduce the price to reflect the increased pressure on people’s budgets and secure a rental so that the property doesn’t stay empty.
"Looking ahead, more tenants may decide to renew their tenancies with current landlords rather than face paying the costs associated with a new move, while some landlords may also decide to keep rents relatively stable because they value having a long term tenant who will look after their property.”
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