Channel Islands Housing Market Shows Signs of Recovery

Real estate professionals in the Channel Islands indicate that the housing market is beginning to normalize following a difficult period. Andre Austin, director of Swoffers in Guernsey, expressed satisfaction with the market’s performance throughout 2024. In Jersey, Roger Trower, owner of Broadlands estate agents, noted that elevated interest rates had created “very tough” conditions over recent years, but observed that the market was “beginning to recover.” “It’s taken the whole year, I mean it’s been quiet because it was really, really difficult for a very long time,” Mr Trower stated. Latest housing data for Jersey reveals a decrease in property prices during the third quarter of 2024, yet sales saw a 19% rise. Mr Trower commented: “I’ve been doing this for 42 plus years now and I’ve been through loads of recessions before and it’s never been as difficult as it has been, but we have been gradually improving the whole year.” He attributed this improvement to a slight reduction in mortgage rates and buyers adapting to the increased supply, which offers “lots of choice, and that’s what keeps things going.” Mr. Austin reported an increase in available properties on the market over the past year, providing buyers with greater selection. “Rather than just after covid when there was a frenzy of people running round, lots of people after one property, now people can take their time a little bit, see a few more properties,” he explained, characterizing the current situation as “what I would describe as a normal market.” Guernsey’s most recent statistics indicate that local market house prices rose in the third quarter of 2024, alongside an increase in the number of transactions. Mr. Austin anticipates that house prices will maintain their current trajectory into 2025, foreseeing no “major changes,” while also recognizing the inherent cyclical nature of the market. He noted a shortage of new landlords entering the market and stated that the island has not met its construction objectives. Mr. Austin asserted that housing costs would remain elevated until more properties are constructed. “Prices are high because demand is so high and there aren’t enough properties to rent and that’s a problem, a puzzle, we’ve got to solve,” he commented. Mr. Trower emphasized the necessity of continuously attracting investors and developers to the market to increase the availability of rental homes and apartments. He argued that greater supply is required to lower rental costs and suggested that the government ought to lessen regulation to facilitate this outcome.