Average island property price exceeds half a million pounds
THE average cost of a property in Guernsey was more than half a million pounds in the first quarter of 2021.
This was 3.4% higher than the previous quarter and 15% higher than the same period last year.
The mix-adjusted average purchase price rose to a new peak of £509,906, but when adjusted for inflation the average price is still about 4% lower in real terms than the 2013 high.
The news was published by the States as it also sought to take action on what some deputies are now calling the island’s ‘housing crisis’.
Employment & Social Security, in conjunction with members of Policy & Resources and Environment & Infrastructure, is progressing a housing strategy programme.
‘This is an active programme of work looking at the island’s housing needs, both affordable and private sector housing, and how they could be met,’ said ESS president Peter Roffey.
‘Despite the need to develop strategy and good data, we will not allow this to delay the urgent requirement to get on and actually create additional housing stock in the face of what is clearly a significant housing crisis.’
New information provided in the States’ quarterly residential property prices bulletin includes data on private rentals over the past quarter.
It shows year-on-year increases in rental costs and purchase price of homes.
Average rents have gone up 10% over the past year and it was notable that the number of advertised properties fell significantly.
The statistics also reflect a higher-than-average volume of sales over the last four quarters, despite the disruption to sales caused by the lockdowns from March 2020 and January 2021.
‘It has been evident from the feedback from the industry that our housing market is currently subject to an increased level of demand among both renters and buyers,’ said Deputy Roffey.
‘Adding rental prices to the quarterly data set places us in a better position to evidence these pressures.’
