“Now’s the time to buy”

Tuesday 11 August 2015

With an interest rate rise six months off, now’s the time for homebuyers to act.

That’s the view of property expert Paul Scally, who says that a steady volume of transactions and property values along with new lending options, makes now the time to get involved.

Mr Scally – a property lawyer – said that an interest rate rise was still around six months off, and would still be based on small increments from the historic low of 0.5% that has held for the last six years.

And he says that even with an increase, the rate would still be significantly under the long-term average.

Mr Scally said: “Our housing market at the moment is steady in terms of volume and value.

“That’s exactly what an Island like Jersey need and wants.

“No dramatic price increases, no stagnation in the market. There are things that can be improved and the government has a large role to play in that.”

The stats in the quarterly House Price Index for the 12 months up to March showed that property prices in Jersey are more or less back to where they were in the middle of 2009.

The most recent figures for January to March show that:

• One-bedroom flats had dropped £16,000 to £201,000.

• Two-bedroom flats had dropped £6,000 to £335,000.

• Three-bedroom houses had dropped £2,000 to £524,000.

• Four-bedroom houses had dropped £5,000 to £707,000.

The price of a home in Jersey (£437,000) is more than 15 times the median average salary (£28,600). In the UK, the average price of a home (£272,000) is just over ten times the median salary (£25,937).