Last week the House Price Index, compiled by Statistics Jersey, indicated that house prices increased by 7% last year – the highest rise in a decade – while rents went up by 9% on average.
The report also outlined that families on an average income could no longer afford to buy a house of any kind in Jersey.
In response, Housing Minister Sam Mézec said that homes reaching their highest-ever price indicated confidence in Jersey’s property market.
‘The latest House Price Index shows a mature and confident housing market, with all property types recording their highest annual average prices seen to date,’ he said. ‘However, we recognise that the affordability of housing, both to rent and to purchase, is a significant challenge for many Islanders.’
He added that increasing the number of homes and encouraging more efficient use of existing properties are strategies that would be used to tackle the problems with affordability. ‘A consistent supply of new affordable homes will help to reduce the upward pressure on rents and sale prices,’ he said. ‘The Council of Ministers is clear that more action must be taken to improve the affordability of housing, and has made it a priority in the common strategic policy 2018 to 2022 to secure a consistent supply of good-quality homes that are affordable.
‘More than 1,000 affordable homes will be built by the end of 2020 and work is now under way to plan for the Island’s future housing needs.
‘The Objective Assessment of Housing Need Report, published last month, will help to inform this work, including the next Island Plan in 2021.
‘However, it is also important to make better use of the existing homes we have – by bringing vacant homes back into use and tackling under-occupation.’
