Alderney is feeling the crunch

ALDERNEY estate agent John Postlethwaite has called on home owners to lower their asking price.

The former States member (pictured), who owns Mitchell & Partners in Victoria Street, fears one of Alderney's three estate agencies will be forced to close unless the current housing market slump is halted.

And he said it was up to vendors to price their homes realistically in an effort to buck the current trend.

'House prices have come down about 20% in the last 12 months and, if the trend continues, it could lead to property businesses in the island being forced to close down,' he said.

Mr Postlethwaite outlined the reasons behind the slump and said sellers must not expect to receive offers based on valuations made six months ago.

'The housing market has stagnated because there is a recession in both in Alderney and the UK.

'Also, most house prices which were set six months ago are too high to sell in the current climate.

'If people want to sell their house, they must be prepared to reduce the price, confident in the knowledge that the next house down the chain will have a price which is cheaper by a commensurate degree. In other words, the gap between the selling price and the buying price remains the same, just lower down the scale.'