Figures released today show that one-bedroom flats have fallen by 6% and two bedroom flats by 9% over the last two years.
The average one bedroom flat now costs £147,000, and two bedroom £223,000.Overall, the index shows that home prices have fallen 2% year-on-year but that the underlying trend in the cost of houses appears to be up.
Estate agents say the market in houses has been stable for the last two years and that the index appears to bear out what they are seeing.The large number of flats that have been built over the last two years and the number in the pipeline have affected prices, and Alan Maclean, the president of the Jersey Estate Agents Association says the index backs up what is happening in the market.’Developers have built flats for the buy-to-let market but people who have bought them cannot let them.
There are piles of them for rental,’ he said.One knock-on effect of that is a gradual reduction in the rents that landlords can expect to achieve.Senator Philip Ozouf, who chairs the economic policy sub-committee, accepts that the figures are bad news for people who have recently bought flats, but says it shows that States policies are working.’We are not saying it is good news but our long term policies do appear to be working in terms of increasing availability and affordability,’ he said.Deputy David Crespel, the vice president of Housing, said people need to look at property purchases differently from when prices were rising rapidly.’I think those days are over.
People shouldn’t buy thinking they are going to make a quick profit.’
