House Prices Up 9.2%

Saturday, 14 November 2020 09:08

The average price paid for a home in Guernsey has risen to £465,664.

The latest property price data shows a rise of 1.3% on the previous quarter, and up 9.2% on the same time last year.

277 homes changed hands in the third quarter of this year.

That is 136 more than in the spring, when moves were affected by lockdown, and is the highest number recorded since 2006.

The annual rise in the House Price Index is also the highest on record in 12 years.

Mortgage provider Skipton says people more homeowners have looked to upgrade their homes following the pandemic;

"These are unusual and unprecedented times which has forced a lot of homeowners to re-evaluate their options. Many are now looking to move to homes with more outdoor space or with room for home offices, following an increase in flexible working arrangements and the experience of home schooling.

"There has been a dampening of the affordability challenge over recent years and short term rises such as what we are experiencing can be supported, but we do not want to see this demand continue long-term, pushing house prices even further up. We have long believed that a HPI of RPI + 1% or +2% is sustainable, in line with wage increases, any higher and we will see affordability become even more challenging." - Jim Coupe, Managing Director of Skipton International.

There were 20 open market transactions, with an average price of £1.2 million, down from £1.5 in 2019.