News

The States of Jersey have published their report on the Jersey House Price Index for the fourth quarter of 2017.

In the fourth quarter of 2017, 396 properties were sold in Jersey.

On a calendar year basis, the turnover of properties was 7% higher than in 2016. This increase was driven by an increase in flat sales, which are up by 26%. The number of house sales, however, has declined by 6% in the calendar year.

The statistics show that on a calendar year basis for 2017:

• The Jersey House Price Index was 3% higher than in 2016
• All property types saw average prices increase in 2017
• 2-bedroom flats together with 3- and 4-bedroom houses all recorded their highest ever annual averages

Further statistics report that for Q4 2017:

• Overall housing market activity, on a rolling four-quarter basis, was essentially unchanged when compared with the previous quarter (Q3 2017) and 10% higher than the corresponding quarter of 2016
• On a rolling four-quarter basis, rental prices in Jersey were essentially unchanged during the year ending Q4 2017 compared with the previous quarter (ending Q3 2017)

Priya Jobanputra of Bedell Cristin’s property team has observed both the benefits for homeowners and the difficulties that some buyers may face.

“It is great to see Jersey property thriving. At the end of 2017, Jersey house prices were on par with London and all property types had increased in value. This is fantastic news for homeowners. However, buyers trying to get on the ladder or young families looking to move up the property ladder may be stifled.

By way of example, since 2007 property prices have increased by 33% whilst earnings have increased by just 26%. As wage inflation lags behind housing inflation and lenders demand large deposits, first time buyers are finding it increasingly difficult to get on the housing ladder.”

She continued: “However, there may be hope for some first-time buyers as a new law was passed last week which opens the door for the use of shared equity schemes in Jersey.

Shared equity schemes allow buyers to combine a small deposit with a lower than average mortgage size by providing the buyer with an ‘equity loan,’ which covers a percentage of the property’s value.

The value of the equity loan generally fluctuates with the value of the property, so the amount the buyer pays depends on the value of the property at the time you repay.

We will have to wait and see if the States use this opportunity to aid buyers.”

Mean prices for individual property types 2013 to 2017: