Policy Brief on housing updated with new house price figures

The most recent report on house prices by Statistics Jersey is at first sight alarming. The 3 ^rd quarter report, published on 7 November, reported that average prices were 12.0% lower than a year earlier. The fall was particularly pronounced for 4-bedroom houses (19.7%) and 1-bedroom flats (15.5%).

The Centre’s Policy Brief Housing has been updated to include the new data. The Brief includes calculations of the fall in house prices and rents taking account of the rise in prices generally -

The fall in house prices and rents has occurred at a time of high inflation generally. In nominal terms average house prices have fallen by 14.1% since the peak in 2022 Q3. Inflation in that period has been 13.3% so in real terms house prices have fallen by 27.4%. Average rents have fallen by 5.3% since their peak in 2022 Q3 and in real terms by 18.6%.

The Brief comments that although house prices have fallen significantly in real terms, housing affordability, in respect of property purchases, has reduced as a result of the increase in mortgage rates.

The Brief is one of 27, each of which is a succinct up-to-date summary of the current position in respect of a significant policy area such as economic trends, population, healthcare, external relations and education. The papers include links to relevant official policy documents and research.

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