ISLANDERS at the bottom end of the housing market are being squeezed out. And a prediction that prices are likely to continue to rise adds to the bad news for first-time buyers.
The lower end of the market saw a 15% drop in the number of sales in 2007 and the average price went up by just under 5%.
The mid-price range saw very little change in transactions and average prices, but the top end saw a 15% rise in sales and an average price increase of about 20%.
‘This suggests that local market houses are getting more expensive and less affordable, particularly for first-time buyers,’ said Chris Lovell, managing director of estate agents Lovell & Partners. ‘For many wanting to move up the property ladder or even get on it, rising prices will not be welcome news.’
Much in future will depend on the States regarding housing licences, the number of new dwellings permitted, planning policy, Government Business Plan and other factors, he said.
‘I don’t think house prices have peaked,’ said Mr Lovell.
There is strong demand, particularly for good properties in good locations, but he warned islanders to be careful because the market could turn and despite good mortgage offers being available, sentiment could change quickly.
‘We need steady economic growth, not turbulent times. We need confidence in our business leaders, our politicians and policies. With an election due soon - time will tell,’ he said.
‘I see a strong start to the new year and a risk of even higher prices if the ever-increasing demand for housing is not satisfied.
‘The alternative might be to control population growth, which might be very difficult especially if we, as an island, are trying to increase the tax revenue to pay for our ever- increasing thirst for services.
‘Not forgetting the wish on the part of some for a neutral position on the population level - a population I hasten to add which is getting older and more demanding.’
Recent figures in the UK showed that mortgage affordability was at its worst in 15 years and repossessions had risen sharply.
In Cornwall yesterday it emerged that the housing crisis was getting rapidly worse, with claims that developers, planning authorities and second home owners were making it impossible for local people to buy an affordable home.
Article posted on 3rd January, 2008 - 12.00am
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