Increasing house prices in the Island have shown no sign of letting up, with costs rising at a faster rate than in recent years.
The latest House Price Index report produced by Statistics Jersey on Thursday indicated that, using comparable measures, an average home in Jersey is now £98,000 more expensive than in Guernsey.
The average price of a home in the Island during the third quarter of 2018 was £485,000, which was seven per cent more than the same period 12 months earlier.
An average Jersey home was slightly more expensive than in London, where it cost £484,000, and more than double the average UK cost of £232,000. The average cost of a three-bedroom family home was £589,000.
Average rents increased by three per cent in Jersey over the year, according to the report.
Former Senator Ben Shenton, who has 40 years’ experience as an investment manager, said that he believes Jersey is now in a ‘classic housing bubble’ and could be set for ‘hard fall’ when tougher immigration controls are applied, taking pressure off housing supply.
In his JEP column earlier this week Mr Shenton said that in Alderney and Guernsey, house prices have declined sharply following population decline.
Quoting statistics from mortgage lender Skipton, he pointed out that in recent years house prices have fallen by 40 per cent in Alderney, where a fifth of homes are now vacant.
Meanwhile, in Guernsey house prices have dropped by 12.6 per cent since 2014, while in Jersey they have increased by 20 per cent over the same period.
Gill Hunt, president of the Jersey Estate Agents Association, said, however, that she believes the market will stay stable with demand remaining high in Jersey.
She added that interest rates are unlikely to increase in the near future, which should further encourage potential homebuyers.
