House prices go up – but deposit loans on the way

ISLANDERS struggling to get a foot on the property ladder could soon receive help from the States after ministers announced they were weeks away from unveiling a new deposit loan scheme.

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ISLANDERS struggling to get a foot on the property ladder could soon receive help from the States after ministers announced they were weeks away from unveiling a new deposit loan scheme.

Treasury Minister Philip Ozouf has revealed that he and Housing Minister Andrew Green were currently 'putting the final touches' to plans to help as many Islanders as possible achieve their dream of buying their own home.

His announcement came following a briefing on the latest Jersey House Price Index out today which shows that house prices have returned to a similar level as a year ago with the average price of a property in the third quarter of this year £403,000.

The index, which is compiled by the States Statistics Unit using details of homes purchased during a given period, showed that during July to September prices were around one per cent below last year's average and almost one per cent higher than at the same time last year.

Comments for: "House prices go up – but deposit loans on the way"

Jersey Rackman

Far better to bring/phase in some sort of capital gains tax on residential property so we can get some sanity in property to average wage ratios. This doesn't sound much better than those 125% mortgages that sank Northern Rock.

NB

House prices have not gone up, they have gone down. Not only are they down on last quarter but turnover is down nearly 20% on last quarter and nearly 10% on this time last year.

Presumably because (and i quote) prices are "less than 1% higher than in the corresponding quarter of 2011." this means you can happily spin to your hearts content? All property types with the exception of 1 bed flats and 3 bed houses are down and even those have changed by marginal amounts.

"Following an upward fluctuation recorded in the previous quarter (Q2 2012), the latest

quarter (Q3 2012) has seen the Jersey house price index return to a level similar to that of a

year ago: up by less than 1% compared with Q3 2011; and down by 1% compared with the

annual average for calendar year 2011."

So, per the last point, prices down 1% this year compared to last. God forbid the lemmings catch onto the fact the property prices don't always go up eh? Convenient how you normally chose to compare quarters in the current year yet when they show a decrease you happily resort back to a previous years figures because it paints a prettier picture.

paulc

misleading headline when the index fell from 151.6 to 146.9 in Q3. a 17% fall in properties sold in Q3 vs Q2 is the most striking number.

the states using tax payers money to loan to people who cannot afford to buy a house is dumb. the aim should be to allow earnings to increase to meet house prices not encourage demand for housing and hence put more upward pressure on house prices. feathering ones own nest perhaps?

any help for those who do not wish to burden themselves with even more debt? any notice taken of recent UK reports into hte financial crash which stated borrowers should increase the deposit they make. its a deposit, thats the idea.

but sure, as the consensus of jersey agrees, its not the brightest people that put themselves forward for election.

when the fall in house prices comes it will just be even harded and have a greater impact on jerseys economy. i just hope ozouf and green have their timing right to get out at the right price.

does no-one else see international tax wars coming over the hill?

coninSpector

Good news at last.

Esther Jones

House prices go up....................but nobody's buying them........says it all really!

Matthew H

I don't live on the Island anymore but still get emails from estate agents advertising new properties. I'm always amazed when I see the prices and am just thankful we (partner) didn't buy a property 3 years ago, because it wouldn't have been more than a 1 bed flat/cottage and we'd be paying our socks off. As nice as Jersey is (other places are nice too) it's just not worth it going to the limit and struggling for 30 years, not knowing if the sector you're working in will exist in 10 years. You always hear that you have to work your way up the property ladder to get a house but those times are over in Jersey. If you're a good saver it's still possible to get a house with a nice garden straight away, just did it ourselves and we aren't state workers:-) + have enough money to enjoy it. There will definitely be more bargains in the lower price range, so I wouldn't rush buying a 1-2 bed in Jersey now.

Alan

Surely by the States bringing in deposits that would normally be required by banks is just an attempt to keep property prices high?

George

Neatly summed up. Our Economic Development Minister owns which business?..............Mulberry Estate Agents!

As long as we have self interest at the heart of our government, life here won't improve. We need someone like Kevin Keen as our Chief Minister, pay him as much as he would get in the private sector and he could bring some fiscal sanity to the Island. Do Ozouf and McClean need the salary they receive as States Members? They are in the States to protect their own interests, keep the wealth where they want it.

Michael

Totally agree with you George the two you mention are the worst examples how can an Estate agent have any say when it comes to government policy and as for Ozouf he has not done a real job ever it could only happen in Jersey

mallouin

Thank the UK Thatcher government for advocating the 'right to buy' for everybody which we took up as a good idea,no consideration for the size of the island or for what was a fairly stable market with renting generally acceptable,buying with States help and prices that with planning and effort many could afford in time should they wish.Unbridled immigration over the last ten years or so has nailed the fallacy 'that all can buy' truly to the mast.If the Minister really wants a job I suggest he tackle the high costs of rent,that imo would benefit many,many more islanders.

Michael

Do away with the Government rent rebate scheme, rents would fall without this subsidy which is a charter for land lords to over charge for there premises

mallouin

Wrong on so many levels,think it through to its bitter social end,but maybe you are one of the fortunate few.

Outsider

Buyer: I'd like a mortgage please Mr Banker

Banker: Certainly sir, what assets do you have? Deposit?

Buyer: Well, I don't have a deposit but I've borrowed from the states for that!

Banker: I know the press would have you believe us bankers are a stupid lot but even we can see that instead of an asset, you have a debt. Therefore we can't lend.

Buyer: eh? But the states said...

Banker: pull the door on your way out, thanks.

Pip Clement

What will happen if the borrower falls in to arrears and cannot repay the loan in full?

Will the bank or the States get paid first and who will absorb any shortfall?

Overpopulated

.. and what happens if they get divorced?

Shortfall will be absorbed by tax payers - yet another badly thought out cunning plan

Andy

House prices have not risen ....what rubbish stating that fact,whats on the market is far too overpriced ,one of the reasons youngers people can't get on the ladder,I'm told the market is as flat as a pancake and no sign of improvement

R B Bougourd

Who will be offering these loans, Freddie Mae or Fanny Mac?

Mario

Looks like an attempt to kick start a failing housing market. If I was a first time buyer, I would not be buying in this present economic climate. You can't even guarentee to have a job in 6 months let alone 30 plus years. Insecurity is affecting the housing market and it isn't going to go away any time soon. I can only see prices carrying on downwards.

As Pip asks who will foot the bill should someone default? I would put money on the good old taxpayer carrying the can, and not the banks.

Positive please

I think we need to see any sign of coming out of the rut we are in as positive... Let's not make Jersey any more gloomy then needs be....! If people start to get a helping hand, great that's good news isn't it? We are an island of negativity at times! Why not be more positive...after all we don't own all the problems in the world. Many people would love to reside in Jersey.

Propaganda

And now for some facts which you can find quite easily by reading the same report the JEP used to write this story. NB, Paulc and Andy are on the money, the headline is a myth.

4 bed houses

Quarter 4 2010 £768k

Now £645k thats £123k cheaper, 16% price drop

2 bed flats

Quarter 2 2012 £391k

Now £331k thats £60k cheaper, 15% price drop

2 bed houses

Quarter 4 2010 £420k

Now £378k thats £42k cheaper, 10% price drop

3 bed houses

Quarter 2 2011 £542k

Now £494k thats £48k cheaper, 9% price drop

1 bed flats

Quarter 1 2010 £225k

Now £212k thats £13k cheaper, 6% price drop

Average price drop in last three years for all property types is 11%.

And the States are seriously thinking of strapping struggling families up with a deposit loan on top of a mortgage with prices falling like this?

I think Outsider is right, the states might think it's a good idea, the estate agents and lawyers will think it's a great idea, anyone stupid enough to buy a house right now might thinks it's a good idea too, but............

The bank manager is going to laugh in these peoples faces,"ha ha ha you have a 20% deposit and you've borrowed 15% of that, you want me to lend you money to buy something that's going to be worth £30k less in a year, ha ha ha, come back with a 40% deposit and we might be able to help".

£6 million plus for Plemont, £60k recently voted for new uniforms for a brass band and today we've got enough cash to buy fishermens licences for them. Am I missing something here, I thought we were skint, in a recession and all needed to tighten our belts!!!!

PJK

Mortgage to pay, deposit loan to pay,stress levels must be sky high.

Another 20 jobs lost in Finance yesterday!

the future

Please let the market respond to the current economic situation as soon as possible so the recovery can start.

A collapse in the price of property will kick start investment and building and so the spiral starts up again. This idea just leads to stagnation and a poor investment potential for buyers in Jersey.

If you really want to let local people buy houses let the market collapse for heavens sake.

Insanity...