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Property prices in Guernsey up 4.5% year on year

The data shows that values have continued to rise both on a rolling annual and year to date basis, with the rise recorded since the end of 2010 being around 4%.

The average mix adjusted price of properties sold was £427,025, virtually identical to the figure at the end of June 2011. The mix adjusted price for property alone stands at £422,510, compared to approximately £418,000 three months ago.

There were a total of 219 local market house sales during the period, down from 252 at the end of June 2011.  Although volumes have slipped back slightly, the total sales completed was still higher than in the two quarters at the end of 2010 and the start of 2011.

Within these figures, the number of transactions for one and two bed apartments rose, whilst other categories remained static or slipped back. In price terms, the greatest fall was in the £400,000 to £499,999 bracket, where the number of transactions dropped from 46 to 33. Average deposits contributed by buyers stood at 25%, meaning the average purchase was funded with a 75% mortgage.

‘The economic headlines from around the world and Europe in particular have not inspired confidence recently and we may be starting to see  a degree of caution entering the market. Although prices have held up well, volumes have slipped back slightly, as some have decided to postpone moving,’ explained Nigel Pascoe, director of lending for Guernsey and Jersey mortgage specialists Skipton International.

‘In Guernsey, we cannot totally escape the economic realities that are affecting the UK, European and world markets and so some weakness in prices was to be expected. However, compared to the UK housing market over the past year, the 4.5% rise recorded in Guernsey  represents an impressive performance against an average 2.6% fall onshore, a difference of over 7%,’ he said.

‘In unsteady markets such as now, it is important to ensure that you have the right mortgage for your own personal circumstances. Our commitment to provide a truly personalised service and to ensure our borrowers have the right product for their own needs is as vital as ever as a result,’ he added.