UK property buyers adopting a ‘wait and see’ approach

The assessment was set out in recently-published research from Savills examining the property market in the Channel Islands, including interest from wealthy potential buyers from the UK – so-called high net worth individuals.

‘The mainstream residential markets of both islands are buoyant, with rising transaction volumes supporting price growth. Set against steady in-migration, Jersey’s market continues a strong run, while Guernsey’s has picked up after several slow years,’ said Savills’ world research director Paul Tostevin in the foreword of the research.

‘Guernsey’s open market returned to growth last year and Jersey’s prime market remains resilient. Interest in the islands from HNWIs has increased against a backdrop of Brexit and general political uncertainty in the UK, but many buyers from the UK have adopted a “wait and see” approach. We expect clarity, when it emerges, to unlock some pent-up demand.’

The report also said: ‘Like Jersey, political uncertainty in the UK has led to increased enquiries, rather than many more movers.’

Pull factors, such as a high quality of life and favourable business environment, were highlighted as attracting most individuals to the Channel Islands rather than push factors such as Brexit.

Meanwhile, open market activity was being driven by improved sentiment and more-realistic pricing from sellers. Another incentive was the introduction of a tax cap for new open market buyers, which came into effect in 2018.

The impact of Brexit on Jersey and Guernsey’s finance industries was discussed in the report, which said they could expect their relationships with the EU to continue structurally unaffected post-Brexit. ‘The UK remains the Channel Islands’ major trading partner however, so the UK’s future relationship with the EU, and the impacts on its economy, still has a knock-on effect on the islands,’ added the research.