Cost of buying a home in Jersey falls for first time since 2016

The average value of a home in Jersey has fallen for the first time in seven years, according to newly-released figures.

The island's House Price Index has revealed 42% fewer properties changed hands between April-June 2023, compared to the same three-month period a year earlier.

It comes as the Bank of England has increased interest rates 14 consecutive times, now standing at 5.25% - making borrowing the most expensive it has been since the 2008 financial crash.

A one-bedroom flat now costs an average of £365,000 - pushing the cost of getting on the property ladder up £19,000 compared to the first three months of the year.

The price of a two-bedroom flat has reached a record high of £558,000, while two-bedroom houses actually fell to an average of £621,000 - down £28k compared to the previous quarter.

Three-bedroom houses now cost an average of £760,000, with four-bedroom homes selling for around £1.3 million.

Overall, house prices - excluding new builds - have fallen by around 4% from Jersey's all-time high between July and September 2022.

Rental market prices have seen a 7% increase from the same time last year, signalling the housing market slowing up.

Jersey's Housing Minister, Deputy David Warr, said: "Some reduction in house prices is good news for first-time buyers in Jersey.

"But, of course, any long-term and sustained reductions will be a concern, particularly for existing homeowners."

He added that the decreasing house prices are "largely driven by the rise in mortgage interest rates being seen because of the Bank of England base rate hikes.

"As we continue to see very low numbers of transactions taking place, we should expect to see a further downward change in prices over the coming months."

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