Jersey house prices continue flat trend in 2011
The average price of houses and flats sold in Jersey between January and March 2011 was broadly similar to the average for the whole of 2010, according to data released this month by the States of Jersey. This pattern continues a trend which set in during 2008, meaning that property values have on average remained remarkably stable for nearly three years now.
Going forward, the methodology applied to the production of the data has been changed to include an element of seasonal adjustment and the inclusion of Share Transfer purchases within the data.
Reviewing the data, Nigel Pascoe, Director of Lending for Skipton International, the Jersey mortgage specialists who reported buoyant lending during 2010 said, "This latest data continues a trend we can trace back to early 2008, meaning the Jersey market has ridden out the financial turbulence of the past few years remarkably well. Overall, the Jersey property market has delivered a level performance for around three years now, meaning homeowners have not seen the value of one of their major capital investments fall."
Within the data, the value of one and two bed houses and flats has barely changed for over thirty six months. Price volatility has, however, been a feature of the four bed house sector, where prices have ranged from £625,000 to £775,000.
Compared to Guernsey and the UK, average values in Jersey standing at £443,000 are now well above twice the national average for the UK at £205,000 and indeed some 30% higher than Greater London, the most expensive region in the UK, where the average price of a home is £339,000. On average, Jersey house prices are some 5% higher than those in Guernsey which stand at £425,000.
Activity levels in the market rose by around 10% compared to the position at the close of 2010, but as much of this was in the one and two bed flat sector, the activity is likely to have been driven by the inclusion of the Share Transfer data. Overall, therefore, volumes have remained steady over the past three months.
In the UK as a whole, according to the UK Land Registry, over the 12 months to March 2011, prices fell back 2.3% and 1.1% in March 2011 alone. Over the year, the London region was the only one to show any gain, with a modest 0.8% recorded, whilst all other regions fell back in value, the worst hit being the North East where values fell by 9.3% during the 12 month period.
Nigel Pascoe ends, "At Skipton International, we are seeing firm demand and increasing levels of enquiries for our Base rate Tracker and Buy to Let mortgages. Overall, we feel the market is likely to continue its current trend, but the absolute level of demand will be influenced by wider questions of confidence both here and in the UK. As inflation in the UK rises, so we can expect to see some volatility in the market, but overall, Jersey property continues to represent a good long term investment."
For further information regarding Skipton International call 730 730.