/ Author: SPF

Guernsey continues to experience something of a property boom. Our MD Pierre Blampied was invited onto BBC Radio Guernsey’s breakfast show to give his professional opinion on the current housing climate.

“At the moment there is a distinct lack of property available across all areas of the residential market. Ultimately, this lack of stock drives up the costs of properties”. People are struggling to identify properties to rent, buy and there are even circumstances where people have sold but can’t then find anything to buy or rent, which leaves them in a precarious situation.

Sealed bids are also playing a significant role in the purchasing of homes, more than Pierre has seen in his time in the mortgage industry since the late 90s. An example of this was a property on the market for £850,000, and with significant interest it went to sealed bids and received an offer for £950,000.

The concern is that our young people choose to move away from Guernsey as housing simply isn’t affordable. The Guernsey Housing Association has done a great job for the market, however we need the States to do more in terms of the planning process. By speeding up the planning process we can hopefully see developers undertaking new build projects as opposed to land banking. In terms of simple economics this would suggest a potential slowdown in house price inflation.

“Despite this, average wages are higher here and the job market in the UK is a lot tougher, so it’s important to be aware Guernsey really does have its advantages”.

A politician in Jersey has suggested Jersey’s property market isn’t ‘fit for purpose’, due to a large number of investors snapping up properties. Pierre explains in Guernsey, historically we haven’t had attractive buy-to-let mortgages but that changed approximately two years ago, which has seen a marginal increase (in investors) but nothing significant to be concerned about.

To conclude, we shouldn’t go as far to say we’re in a housing crisis. Evidently, prices are rising and the distinct lack of stock is a problem, so the answer is to build more properties, and speed up the planning process. With demand so high for properties, you need to be ready to act quickly. At SPF we can ensure you get the best mortgage available, as we have access to every product on the Island.

Click here and head to 1:06:05 to listen to the discussion in full.

Give us a call on 01481 715234 or email [email protected] for any mortgage advice or queries.