The average price of a Jersey home is now £567,000 and all property types saw their average price increase across the year. The turnover of properties was actually 10% lower than in 2019, and this is attributed mostly to a fall in the number of flats sold – a 19% decrease on an annual basis.
Nevertheless, the number of properties sold in Q4 was 19% higher than in Q4 of 2019, and 4% higher than Q3 of 2020. This reflects the incredibly busy second half of the year, as the Jersey property market experienced a post-lockdown surge.
Our expert team certainly conclude with the findings of Statistics Jersey; 2020 was exceptionally busy and new buyers were getting in touch with us daily as more and more people sought to move home.
Jersey had an active property market at the start of 2020 but it really took off when the island emerged from the first lockdown, in May. A combination of pent-up activity, low interest rates making mortgages more appealing and more cash in the economy thanks to the lack of spending over lockdown have all contributed to a booming market which continues with force.
Simple economics dictate that an increase in demand results in an increase in prices, but this is far from being just a Jersey phenomenon.
In Guernsey, the latest data revealed the largest annual change (11.8%) in the mix adjusted average price since the measure was first calculated, in 2008.
In the UK, annual house price growth rose to a six-year high of 7.3% at the end of December 2020, according to data from Nationwide. The East Midlands saw the strongest growth in prices in Q4, but prices were up across all regions.
On 21 February 2021, The Sunday Times contained a story on affordability in the UK; an issue closely linked to house prices:
‘The City of Westminster in London would need to drop 69% to be affordable to a buyer on the average local salary. What is surprising is how many other UK cities have become unaffordable — defined as requiring a loan of more than three and a half times the local salary. The top ten least affordable cities in the report are Chichester, where the average 2020 price (£407,740) would have to drop 68% to be affordable, Oxford (also 68%), Bath (66%), Cambridge and Brighton (both 65%), Exeter (60%), St. Albans (59%), and Bristol and Chelmsford (both 57%).’
Rising house prices are therefore not a Jersey phenomenon, they’re a national one.
Even with prices on the rise there is still value to be had and our expert team can help you navigate it and find the right property for you. If you are seriously thinking of purchasing property don’t just sit back, talk to the team on 717100 and they can help you navigate the market.