Guernsey house prices have dipped slightly, but renters face soaring costs.

The average price of a local market property in Guernsey has fallen slightly to £587,673. That’s 2.2% lower than this time last year, suggesting sellers are starting to offer discounts.

Fewer homes were sold in the second quarter of 2023 compared to the previous quarter, indicating a cooling market.

Rent Rockets While Wages Stagnate

However, while buyers might be seeing some relief, renters are facing soaring costs. The average monthly rent for local market properties has climbed to almost £2,000. That’s a hefty 5.7% increase compared to the same period last year and almost double what tenants paid just five years ago!

Expert Predicts Market Stabilisation

Economic expert Richard Hemans suggests that the housing market, while weak, is showing signs of stabilisation after the turbulent activity seen during the pandemic. He notes, “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.”

Hemans also highlights the growing issue of affordability, stating, “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.”

Prices Remain Elevated Compared to Pre-Pandemic Levels

While the recent dip in house prices may offer a glimmer of hope to buyers, it’s worth noting that prices remain significantly higher than pre-pandemic levels across all property types.