A glance at the Jersey House Price Index shows that prices for property on the island have been shifting slowly upwards, while transaction levels have been growing at quite a rate – a positive sign of a stable market.
In the past year, house prices have grown by 2%, with an 8% increase in turnover from Q1 2015 to Q2 2016.
The average house price in Jersey is now £444,000, up from £437,000 on the same period last year, while transaction volumes are up from 260 to 284.
The market is very buoyant, with levels of interest in purchasing and moving not seen since mid 2008 before the ‘worldwide crash’. Properties are also being snapped up by potential buyers before they are even coming to the market.
Low interest rates
With talks of a Bank of England Base Rate cut next month and interest rates already at record lows, this is a very positive time to buy. The ability to lock into fixed rates gives certainty to clients’ budgets, making the purchase of a new home straightforward and more achievable.
We are seeing buyers from all aspects of the market; First Time Buyers, upsizing, downsizing, and buy-to-let, both here and in the UK.
Since the launch of our Mortgage Calculator, we have become even busier. This tool enables customers to go online and quickly find out how much they could borrow and the associated repayment costs.
There are lots of mortgage products on the market for all sorts of buyers in Jersey. We’re currently offering six different products, from base rate trackers, to next generation mortgages, with rates as low as 1.99%.
House prices rising
Thanks to the range of products and variety of mortgage providers in Jersey we have good choice in the market, which keeps things moving forwards across all price brackets of property.
Average house prices in Jersey are now above 2008 levels for most housing types; ranging from an average of £201,000 for a one-bedroom flat, to £828,000 for a four-bedroom house.
There is still a good supply of housing across all categories in the island, with a number of new developments gently boosting housing stock. However, as the island’s population continues to grow, with more people choosing to live alone or in smaller family units, pressure on housing may increase. As with most situations of supply and demand, if demand for housing increases, and if housing supply stays static, it would be quite likely prices would rise.