/ Author: SPF

Our MD, Pierre Blampied, was interviewed by BBC Radio Guernsey on Monday and asked for his expert opinion on reasons for the lack of stock across all sectors of the residential property market.

With the number of new properties built only increasing by 83 last year, the lowest since 2016, it would suggest the pandemic is to blame for the lack of new builds. However, Pierre explains that he believes the issue stems from developers not undertaking new developments. His opinion is that this has been caused by the need for 25-30% of larger developments to be put aside for Guernsey Housing Association social housing and adds “Clearly, this isn’t working as developers are currently not building. The Guernsey Housing Association is doing a fantastic job but the planning process needs to be simplified, because it’s taking a very long time from buying a piece of land to developing it.” However he does make it clear that “It’s not necessarily a housing crisis, but there are issues in all areas of the residential property market on both Open and Local market in respect of rentals and sales”.

Though supply may be an issue the fact that demand is high is a positive, on the Open Market side, new people are moving to the island, and on the Local Market, local people are returning. Consequently, however, there has been a significant number of instances where properties for sale have gone to sealed bids. Pierre states that he’s been in the industry since the late 90s and is seeing more now than ever before. Also indicative of the lack of stock is that many properties are now being sold above asking price too, which of course is a concern for those looking to buy.

One of the key issues is that developers need to be encouraged to build as a number are currently sitting on land but not developing. So, for anyone looking to buy it’s important to know how much you can afford and be ready to act. SPF, not only offer a speedy decision in principle, but we are the only place that has access to every lender available on island, so you can be sure of getting the best deal for your circumstances and be ready to make that offer on your dream home.

Click here and head to 1:37:50 to listen to the discussion in full.

Give us a call on 01481 715234 or email [email protected] to find out more.