Jersey house prices slump

The cost of buying a place to live in Jersey is becoming cheaper.

Prices are at a four-year-low, and that's before inflation has been taken into account.

Over the last year, the value of 2, 3 and 4-bed homes are down by between 5% and 8%.

Lower prices and more accessible mortgages seem to have put activity back into the market with the volume of sales up by a quarter in the first three months of the year to a total of almost 300 transactions.

A glut of one-bed flats has seen prices plunge by 16% in the last 24 months.

But two-bed apartments have been holding their value. During 2008 and 2009 the average price was around £320,000. At the end of last year prices actually rose a fraction and have stayed put so far this year.

The average cost of a two-bed house is £383,000 - 6% lower than two years ago. And prices for three-bedrooom houses are down 5% on the average for last year. The figure now stands at £485,000.

And the average price for a four-bed house has fallen below £650,000 for the first time since the end of 2008.

By adding up the prices of all the properties sold and then working out the average, property prices in Jersey are cheaper than in Guernsey where the economy has been stronger. In Jersey the so-called mix-adjusted average price is £398,000 compared with £440,000 in Guernsey and £374,000 in Greater London.

If you are looking to move to the UK you will get more for your money. Overall in England the average figure for properties is £235,000 which compares with £179,000 in Scotland, £153,000 in Wales and £136,000 in Northern Ireland.
(from CTV)