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Guernsey house prices continue to rise and the mix adjusted average price for a local property is now nearly £600,000.
The latest Guernsey Residential Property Prices bulletin has been published, and the Institute of Directors’ (IoD) lead on economic matters has looked through the findings.
You can read Richard Hemans comment below:
“Guernsey’s housing market remains very strong, with the prices of both local and open market properties increasing substantially over the last 12 months at 18.5% and 17% respectively. Equally, there continues to be a reduction in the length of time it takes to sell a property and a narrowing of the gap between the final sale price and the maximum advertised price.
“The cost of renting is also rising significantly with the average property rental now 14% higher than a year ago.”
“The volume of transactions in both local and open market properties has declined over the last 12 months but this is compared with an exceptional year in 2021, and transactions remain above pre-pandemic levels.
“The strength in the housing market is good news for homeowners who will feel more confident in their ability to spend, and the States who will benefit from document duty receipts. Similarly, consumer-facing businesses will feel encouraged that consumer demand is supported by robust house prices.
“However, the picture is not all rosy. More islanders are being priced out of the housing market. This is notable in the measures of affordability, in the form of rent and house prices to earnings ratios, which are becoming more stretched again.
“Employers will continue finding it difficult to recruit because workers coming into the island will struggle to find suitable or affordable accommodation. Higher rents will raise inflation further and put pressure on real earnings and consumer spending.
“The increase in interest rates over the next year will likely soften the housing market but the island remains an attractive place to live and demand will continue to be strong. The main issue remains a shortage of housing and therefore supply, so until more properties are built housing will remain a major challenge for the island and the source of many social and economic issues.”
"A little of the heat has come out of the housing market"
