The latest Guernsey Residential Property Prices Bulletin has revealed continued growth and demand in the local market, with local mortgage provider Skipton International anticipating that this will continue into the new year.
A total of 277 transactions took place in third quarter of 2020, the highest number recorded since 2006, as more homeowners look to upgrade their homes following the pandemic.
The House Price Index has risen by 9.2% over the last 12 months, the greatest growth on record since 2008. The average home in Guernsey will now cost buyers an average of £465,664, up 1.3% from the previous quarter.
Jim Coupe, Managing Director of Skipton International, said: “These are unusual and unprecedented times which has forced a lot of homeowners to re-evaluate their options. Many are now looking to move to homes with more outdoor space or with room for home offices, following an increase in flexible working arrangements and the experience of home schooling.
“There has been a dampening of the affordability challenge over recent years and short term rises such as what we are experiencing can be supported, but we do not want to see this demand continue long-term, pushing house prices even further up. We have long believed that a HPI of RPI + 1% or +2% is sustainable, in line with wage increases, any higher and we will see affordability become even more challenging.”
The Bulletin also showed an increased demand in the Open Market sector, with many UK residents looking to relocate to the island as it is viewed as a safer place to live. The last quarter experienced the highest number of transactions of the year in this market, driving the four-quarter average price up by 18.7%.