Jersey house prices up 4% on fourth quarter of 2017
MORTGAGE lender Skipton International has described the recent increase in the Jersey House Price Index as ‘positive’ but warns that prices could rise too fast.
The index for the fourth quarter of 2017 showed all types of property increased in price by an average of 3%, with house prices up by 4% in comparison to the final quarter of 2016. This was despite turnover having dropped slightly.
However, Lorraine McLean, mortgage sales manager for Skipton, said that she would not want to see prices continuing to rise above inflation.
‘We view this as a positive quarter for the property market, as there is clear evidence that people have great confidence and are willing to buy. It was an encouraging end to the year, especially coupled with record highs from employment figures, leaving people in a very good position to invest in property,’ she said.
‘We have continued to see increased demand for mortgages into 2018, but don’t wish to see prices continue to rise beyond the rate of inflation.’
Mrs McLean pointed out that long-term trends show Jersey property prices having peaked in 1989, 1998 and 2008, with annual price increases being more than 20%.
‘These highs were closely followed by sustained periods of decline in the Index and in average home prices,’ she said.
‘2017 was the fourth year the Index has increased, following four years of decline.’
Skipton International has offered residential mortgages in Jersey for more than 13 years, and has completed more than £500 million of loans in the Island. It was recently awarded another Feefo Gold Trusted Service Award for 2018 in recognition of outstanding customer service, the second successive year the bank has received the award. This is an independent rating, based exclusively on genuine reviews from verified customers.