Prices rose 2% in the first three months of the year, leaving the average house costing £574,000, compared to the UK national average of £253,000 and £499,000 in London – the most expensive region in the country.
The mean price of a one-bedroom flat sold during the same period was £294,000, which is £6,000 lower than the final quarter of 2020.
However, the average cost of a two-bedroom flat sold in the latest quarter was £459,000, which was £19,000 higher than the previous quarter and the highest mean price to date. Three-bedroom houses also reached their highest average price, at £709,000, which is £22,000 higher than in the fourth quarter of 2020.
Housing Minister Russell Labey said: ‘The latest house price index shows that property prices in Jersey continue to rise so that, for many Islanders, the cost of purchasing or renting a home continues to be their biggest challenge. As the Housing Minister I am committed to playing a significant role in driving change in the sector.’
Criticism surrounding the lack of affordable housing in Jersey was recently reinforced by a report from the Housing Policy Development Board, which described the local property market as ‘not fit for purpose’.
There are currently more than 3,000 people registered on the government’s Affordable Housing Gateway, with almost 2,000 categorised as needing ‘some form of assistance’ to get on the property ladder.
‘During my first 100 days in office I have put together a comprehensive action plan to create better homes,’ said Deputy Labey.
‘This will be published soon and will give a clear timeline of activity both for this year and the years to come.’
He added: ‘The government has already taken action on housing, allocating over £12 million in the Government Plan which will go towards the building of an additional 1,000 affordable homes.’
The day-to-day impact of rising house costs was highlighted earlier this month, when a one-bedroom property in David Place with a total area of 21.3sq/m – the same size as around one-and-a-half parking spaces – was advertised for £295,000.
The house price index also showed that the turnover of properties was 8% higher than the corresponding quarter last year, but 30% lower than the last quarter of 2020. Meanwhile, advertised private-sector rental prices were 1% lower during the first quarter of this year compared to the final quarter of 2020, and overall housing-market activity was around 4% higher across the same period.
‘The challenges driving the increase in house prices are structural and will take time to address but I am confident we are making progress,’ said the minister.
