First annual drop in Jersey house prices for 11 years but mortgage rates push up unaffordability

Annual house prices in Jersey have fallen for the first time in more than a decade, according to new data from Jersey Statistics.

They went down by an average of 3% during 2023 to £661,000, the second-largest annual drop seen since at least 1986.

However, high interest rates for mortgages have seen housing affordability worsen overall - despite the gap between the average cost of a property and how much people earn narrowing.

The market slowed considerably in 2023 with just 843 homes sold compared to 1,470 the previous year, the lowest figure since at least 2002.

All property types were affected but particularly three and four-bed houses that saw sales drop by 55%.

Advertised private sector rents also fell slightly, by 1%, when compared to 2022.

The average (mean) cost of properties in Jersey for October to December 2023: