Jersey’s property market of the last two years has been exceptionally strong – both in terms of sales agreed and house price growth. However it was always going to be difficult for that to continue, particularly in the face of the financial and political uncertainty that’s been experienced in the UK and overseas.

The level of activity that we’ve experienced at the start of this year is on a par with 2019 – so it’s by no means poor. It’s simply a return to what might be described as more ‘normal’ trading conditions following an unprecedented 18 to 24 months.

The latest property bulletin from the States of Jersey appears to bear that out. While all property types have seen their average price increase year on year, activity in the last three months of 2022 cooled ever so slightly when compared to the months before. Overall housing market activity, on a rolling four-quarter basis, was around 11 per cent lower than in the previous quarter (Q3 2022) and three per cent lower than in the corresponding quarter of 2021.

There’s little doubt the cost of living and rise in interest rates made buyers more cautious at the end of last year. However, we are now starting to see signs that things are beginning to settle down. Despite subsequent increases in the base rate from the Bank of England, interest rates appear to be stabilising - and this in turn is bringing more confidence to the market.

Looking ahead

Jersey is not completely immune from the tougher lending rates and economic uncertainty facing other parts of the world. However the picture is largely encouraging.

There will likely be a few twists and turns ahead – the States of Jersey is introducing tax changes for high value residents in July which could well impact the property market. However the hope is these will encourage people to make a long term commitment to the island – setting up home, starting a business and spending money in the local economy which can only be a good thing for the long term prosperity of the island.

For now, there continues to be a steady stream of people registering their interest in buying a home in Jersey, while the start of this year has also been busy with a number of market appraisals.

For those hoping to find a family home for the next 10 to 15 years, there is no reason not to buy and every opportunity to purchase a property at a competitive price. For those selling the key to success is setting a sensible guide price.

The housing market naturally moves up and down and the medium to long term prospects are positive. The desire to move to Jersey is still strong and the island’s property market should remain robust given the underlying demand and quality of life on offer.