Kelvin Seeds. (0372670)

HOUSE prices in Guernsey in the second quarter of 2008 have increased substantially, contrasting with the dramatic slump in the UK market.

The latest figures released by the Policy Council show that the average local-market property price has increased by 6.2% from the first quarter.

And over a longer time period, the prices have increased by 19% in the past year, compared to the 8% fall over the same period in the UK market.

However, Goldridge Estate Agents director Kelvin Seeds doesn’t think that this is a surprise, pointing out that the Guernsey and UK situations are very different.

‘Here, it is very much a case of supply and demand. At the moment, the demand is still as high as it has ever been, whereas there isn’t quite as much supply as there was.

‘That is why we are seeing a slight rise, but a rise nonetheless,’ he said.