Local housing market moves ahead by 4%, reports Skipton International
- Year on year progress running at 4%
- Average Guernsey price now stands at £457,642
Average property prices in Guernsey grew by 4% over the year to June 30 2013, compared to a 1.8% rise over the previous year to March 2013, according to data released today by the States of Guernsey. Compared to the position at the end of March this year, values were higher by 2.2%.
The average mix adjusted purchase price for local market properties now stands at £457,642, up from £447,628 at the end of March this year. Once again, three bed bungalows and one bed apartments led the way in terms of the most sales, these categories accounting for 16% and 15% respectively of all sales.
Most transactions occurred between the £300,000 and £500,000 price points which now account for 85% of all sales. Homebuyers contributed an average 25% deposit, slightly more than in the period at the end of 2012.
As expected, the market has been considerably busier during this quarter, compared to the start of the year. There were a total of 200 sales over the three months, compared to 142 in the first quarter, a rise of over 40%.
Commenting on the latest Guernsey housing data, Nigel Pascoe, Director of Lending for Skipton International, the Guernsey and Jersey mortgage specialists said, "Spring is often a busy time of the year for house moving, as new buyers wish to be settled in before their summer holidays. This year has been no exception and we have seen volumes of sales rise considerably against the earlier point of the year. As well as high volumes of sales in the £300,000 and £500,000 range, we have also seen much stronger activity in the lower price brackets too. The surge in volumes is, we believe, indicative of a more general return in confidence."
In the UK as a whole, according to the UK Land Registry, over the year to June 2013, prices rose by just 0.8% and by 0.6% in the month of June. Other surveys issued by RICS paint a more buoyant picture, focussing on rises across the UK as a whole, but these have yet to feed through to the Land Registry data, which is generally regarded as the most complete picture, albeit one that might lag the market by several weeks. According to the UK Office for National Statistics, prices in the year to June rose by 3.1%. All the surveys agree that London continues to power ahead, recoding a near 7% annual gain and a rise of 3.1% over June.
Nigel Pascoe ends, "We are starting to see an orderly pick up in activity across the market in general now. This spread of activity as a whole across the market suggests that the better economic news which is starting to be heard more generally is impacting upon people's willingness to reengage with the housing market. However, as Guernsey's largest lender in the new mortgage market, we understand the caution many buyers may feel and as a result, the individual products that are needed to meet each customer's needs. We understand that our commitment to provide a truly personal service and to ensure our borrowers have the right product for their personal circumstances is as vital as ever in this market."
For more information on Skipton International mortgage and savings products, visit www.skiptoninternational.com or call +44 (0) 1481 727374