The housing market appeared to cool during the last month, with only 57 homes sold across both markets, compared to 89 last month and 74 this time last year.
One area that did see an increase in sold signs going up was new-builds, with six sold compared to just three in the last month of 2025.
However, Paul Nobes, managing director of developers Infinity, said that high number was just an anomaly and that profitability within housing development remained difficult.
‘House prices have dropped by about 7.5% in the last three and a half years,’ he said.
‘But our construction costs, especially in terms of materials have gone up considerably in the last five years since Covid.
‘Margins are tighter than ever – it’s a very difficult playing field. Hence the amount of people who aren’t developing now.’
‘Those three sold is more coincidental than anything. We’ve been talking to buyers for about nine months, we’ve got six or eight units across the road where we’re now blocking up, and we haven’t got any of those currently under offer.’
The three new-builds sold in January by Infinity, include two three bedroom houses at the Orchard development opposite Le Friquet Garden Centre, which went for £845,000 and £925,000, and the final available house on its Grange Mews development in St Peter Port, which sold for £925,000.
However Mr Nobes this did not paint the whole picture.
‘We have had to rent two of the units at Grange Mews to cover interest costs,’ he said.
‘When the development was completed we had five units left with still a chunk of borrowing.
‘We are currently doing the same at The Orchard and our development at Carriere Lane, with two rented on both sites.’
Unlike other developers, Infinty sells houses direct rather than through an estate agent.
Mr Nobes said this was something the company had always done, but that people were only just noticing as their work in the private market was increasing.
‘The only time we go to agents is when we finish the site and we’ve got several left,’ he said.
The lack of affordable sites to meet the island’s housing needs was on the agenda at the recent public sessions for the review of the Island Development Plan, which Mr Nobes attended.
He said he hoped that independent planning inspector Keith Holland had listened to the concerns that he and other developers had raised.
‘I think what anyone who sat in those meetings and listened for the two weeks found evident was the fact that there isn’t enough permissions by probably half, and a lot of stuff isn’t going ahead for various reasons,’ he said.
‘Mr Holland seemed to get the gist of it by telling us at the end that we had been listened to, and what we had said had been quite compelling.’