Average cost of Guernsey local market properties drops slightly but rent goes up

Despite the small drop in prices, the cost of a home in Guernsey has still increased signficiantly in the last decade. Credit: ITV Channel

The average purchase price of a local market property in Guernsey has dropped slightly to £587,673.

That is 2.2% lower than the same time last year, fuelled by sellers offering bigger discounts on advertised prices.

The number of new buildings and homes overall sold on the local market went down compared to the second quarter of 2023.

However, tenants saw their rent increase on local market properties to an average of nearly £2,000 a month, 5.7% more than the same time in 2023 and nearly double the price they paid five years ago.

Economic expert Richard Hemans says: "The housing market is still very weak with both prices and transactions declining. However, there are no signs of distress and it seems that the market continues to normalise after an unprecedented period of activity during the COVID years.

"Rent remains relatively unaffordable for those who are not property owners, consuming a painful 55% of average earnings and leaving little money available for other expenditure."

Reflecting on how much flats, bungalows and houses will now set someone back in Guernsey, there is still marked increase on purchase prices across all sectors compared to 2019 and 2014.

Credit: States of Guernsey

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