Jersey House Price Index Q1 - 2008

With mortgage lenders reluctant to lend the cost of the average Jersey home is now £474,000. That figure is adjusted to remove dwellings with 'special' features such as swimming pools etc!

The average 1bedroom flat will cost £255,000. So a couple wanting to own their own home taking 'advantage' of a 100% mortgage at 5x their joint income (if they can still secure such a product) will need to be earning at least £25,500 each p.a.

A single person therefore would need to be earning £51,000 to ever hope to own their home.

The supply of homes must be increased to satisfy demand, and the only way to do that without losing all the green field sites around the island is to look up. The public outcry over the high-rise buildings on the water-front is beginning to look a little silly now isn't it?

I hope the new head of planning can talk sense into Min.Cohen and encourage bold, new and modern developments in the future to give the people of Jersey a chance of living, rather than existing here.

Interesting to note following the UK figures released today, that the UK average house price fell by 4.5% in the last year, a period which has seen Jersey's average house price rise by 28%

Yes the House prices are growing but for how long?

Pegasus wrote:Yes the House prices are growing but for how long?

That's for the market to decide, but the point remains that my wages have not risen in the last year, and I'm therefore moving away from any chance of affording a home. House price rises mat stagnate, may even fall, but I doubt they'll fall back anywhere near half of the last years rise before the cycle returns to growth. And during that slow down cycle wages will also slow, so the gap to affordability will not significantly change until supply is increased, and that means Jersey accepting that greater development is required for housing.

[quote="Troy McClure"]

Pegasus wrote: so the gap to affordability will not significantly change until supply is increased, and that means Jersey accepting that greater development is required for housing.

Do you really think that more housing will bring prices down!

Well I never seen it happen before, and I don't see it happening now

Pegasus wrote:

Do you really think that more housing will bring prices down!

Yes, a balance of supply and demand will reduce the rate at which property prices rise over the rate of inflation generally.