Property price slump? No sign of one

Tuesday 19th October 2010, 1:00PM BST.

estate agents GUERNSEY’S housing market is unlikely to be affected by a predicted slump in the UK, according to a local estate agent.

A report from leading financial forecaster the Ernst & Young Item Club said UK property prices were likely to fall by 5% over the next year and will not recover for another five years.

The group said a lack of affordable deals for first-time buyers and the likely effects of UK government cuts were the main reasons for their gloomy prediction.

However, Martel Maides director Keith Enevoldsen said Guernsey’s house prices had remained fairly steady during the economic downturn and he saw no reason why they would fall now.