Guernsey house prices continue upwards, reports Skipton International

11th November 2011
  • Guernsey property prices continue year on year rising pattern
  • Confidence holding up well, reports Skipton International

Average property prices in Guernsey stood 4.5% higher at the end of September 2011 compared to the same date last year, according to data released this week by the States of Guernsey. This third quarter performance means that values have continued to rise both on a rolling annul and year to date basis, with the rise recorded since the end of 2010 being around 4%.

The average mix adjusted price of properties sold, including any fixtures and fittings, now stands at £427,025, virtually identical to the figure at the end of June 2011. The mix adjusted price for property alone stands at £422,510, compared to approximately £418,000 three months ago.

There were a total of 219 local market house sales during the period, down from 252 at the end of June 2011. Although volumes have slipped back slightly, the total sales completed was still higher than in the two quarters at the end of 2010 and the start of 2011. Within these figures, the number of transactions for one and two bed apartments rose, whilst other categories remained static or slipped back. In price terms, the greatest fall was in the £400,000 to £499,999 bracket, where the number of transactions dropped from 46 to 33. Average deposits contributed by buyers stood at 25%, meaning the average purchase was funded with a 75% mortgage loan.

Commenting on the latest Guernsey housing data, Nigel Pascoe, Director of Lending for Skipton International, the Guernsey and Jersey mortgage specialists said, "The economic headliner from around the world and Europe in particular have not inspired confidence recently and we may be starting to see a degree of caution entering the market. Although prices have held up well, volumes have slipped back slightly, as some have decided to postpone moving."

In the UK as a whole, according to the UK Land Registry, over the year to September 2011, prices fell back 2.6%. On a month on month basis, prices eased by 0.3% between August and September as mainland buyers too were affected by issues of confidence stemming from Europe. Over the year, the London region was again the only one to show any gain, with a 2.7% rise recorded, whilst all other regions fell back in value, the worst hit being the North East where values fell by 8.2% during the 12 month period. In the South West, values dropped by 0.5% during September and 2.5% for the past 12 months.

Nigel Pascoe ends, "In Guernsey, we cannot totally escape the economic realities that are affecting the UK, European and world markets and so some weakness in prices was to be expected. However, compared to the UK housing market over the past year, the 4.5% rise recorded in Guernsey represents an impressive performance against an average 2.6% fall onshore, a difference of over 7%. In unsteady markets such as now, it is important to ensure that you have the right Guernsey mortgage for your own personal circumstances. Our commitment to provide a truly personalised service and to ensure our borrowers have the right product for their own needs is as vital as ever as a result."