Last week the latest House Price Index report revealed that a record number of property sales were made in the Island during 2017, mainly driven by an influx of newly built flats coming on to the market.
House prices rose by three per cent, while the average price of a three-bedroom home reached £573,000 – its highest ever level.
Housing Minister Anne Pryke said that the overall figures suggested that the Island’s housing market was ‘confident and stable’.
‘House prices have risen over the year, much as expected, with prices on average being three per cent higher than 2016,’ she said.
‘This is in line with the Fiscal Policy Panel’s [States economic consultants’] assumption and continues a trend of around three to four per cent annual growth since 2014.
‘Rental prices have also been steady over the same period, where there has been little change. Both are indicative of a steady, growing economy and are consistent with strong employment growth [and] falling unemployment.’
Deputy Pryke added, however, that despite the recent stability, extra homes must be built in the Island to ensure that prices did not spiral out of control.
‘In terms of affordability, over the last five years there hasn’t been much change, with the House Price Index increasing by nine per cent, while earnings have increased by 11 per cent and the RPI [inflation] has increased by nine per cent also,’ she said.
‘A relatively stable picture. But there is no room for complacency – we must increase supply of affordable homes or we will likely see steep price rises into the future.
‘This is why I am seeking to deliver 1,000 affordable homes by 2020 and we are now commencing work to review our housing requirements up to 2030.’
A spokesman for the minister said it was expected that the current demand for housing would continue for the ‘foreseeable’ future and without increased supply there would be more ‘upward pressure’ on house prices.
‘The Housing Minister is, therefore, focused on the delivery of a consistent supply of affordable homes for rent and to purchase,’ he said.
‘The minister has also recently commissioned an objective assessment of housing need to provide comprehensive and up-to-date evidence of current and future demand for housing in Jersey up to 2030. This process will help to inform the next Island Plan.’
