The housing conundrum

But with soaring house prices and rental rates, accessing ‘stable shelter’ is by no means guaranteed in Guernsey.

Greedy investors and landlords are often blamed, but Trevor Cooper’s most recent columns in this paper also highlight the part that lenders play in the current housing crisis.

Local market prices have jumped more than 12% in the past year, with the average property now selling for about £600,000, and the average rent is now more than £1,800 per month, more than half of median earnings.

Of course, the island’s relative affluence means that those houses will be sold and tenants will be found.

But what about those who aren’t so affluent? Not everyone has, or wants, a high-flying finance job or can rely on the ‘bank of mum and dad’ to help them on their way, yet they still contribute to our society and need somewhere to live.

It is not an easy issue to solve.

Those already on the property ladder don’t want to be thrown into negative equity due to artificially lowered prices.

Building more houses brings a negative impact on our environment, eating into what’s left of our green spaces. And if what we do build is snapped up by investors or prioritised for key workers, the average islander is unlikely to benefit anyway.

Any action will have a knock-on effect, but doing nothing could risk an exodus, create a labour shortage and damage our economy – which could, ironically, result in lower house prices.