This Is Guernsey

By Simon Tostevin

DEMAND for property continues to grow despite reports that the market is showing signs of a downturn. At a recent Barclays Wealth seminar in Guernsey, the bank’s intermediary and corporate clients, which include some of the Channel Islands’ leading trust companies, heard views and professional insight into the UK residential market from property experts.

The seminar was fronted by Phil Spencer of Channel 4’s Location, Location, Location and Relocation, Relocation. He also owns a property search and buying consultancy.

He was joined by Barclays’ head of structured finance Nicholas Salisbury and representatives from global real estate professionals Knight Frank.

Country manager of Barclays in Guernsey Mark Leaman said the bank felt it was important to hold a comprehensive seminar on the property market because of the recent speculation.

Barclays Wealth is now one of the market leaders in the financing of high value residential property in the UK and in the last 18 months it has financed some of the highest-value homes in the UK, particularly in London.

‘The island’s finance industry is based on the management of wealth so Guernsey benefits very much from the London property market doing well,’ said Mr Leaman. ‘It benefits the people who work here and it creates tax revenue for the island.

‘If the London property market is doing well, then business flows into Guernsey.

‘High value residential property in the UK has become a unique and dynamic marketplace with a significant capital growth trend over the last 12 months.

‘Wealthy individuals have always used offshore trusts and companies to hold their UK property portfolios as the expertise and experience of companies in the Channel Islands offers them exactly what they are looking for.

‘There is no doubt that residential property investment and development remains one of the favoured investment options, particularly given the instability of the financial markets.’

Mr Spencer said he still had the utmost confidence in property.

‘Despite the conflicting reports investors are faced with in the media and the industry, I am confident that the property market remains perfectly healthy.

‘Whether it is buying your first home or investing millions into developing a central London property I am firmly of the opinion that property ownership and development continue to make extremely good financial sense.’