The same is true for the property market. It’ll come as little surprise to hear that last year was a tough one for residential sales. The rise in the cost of living, increasing interest rates and political and economic uncertainly in other parts of the world created something of a perfect storm that slowed a lot of activity.

Jersey wasn’t alone in this. It was happening in other places too. Those buyers who were motivated to move were very conscious of their budgets, while others were happy to stay put until the situation improved.

According to the latest house price index from Statistics Jersey, all this led to fewer transactions and a small dip in property values for the first time in 10 years.

Growing confidence

Fortunately, this year started on a much firmer footing. With inflation heading back towards the Bank of England target of 2.0% and seemingly more stability in the mortgage markets, we are seeing a distinct increase in activity levels. 

Clearly it will take time for improved market conditions to translate into completed sales, but there are definite signs of renewed confidence.

We have been extremely busy with property valuations this year – a sure sign that sellers are readying themselves for a move.

Crucially, there’s a real sense that the all-important market momentum is beginning to return.

Cautious optimism

For those hoping to sell, prices have kept relatively stable, particularly for properties over £3m. However, the market is less buoyant at the lower end. When interest rates drop further we would expect the falling lending and leveraging costs to translate into a wider range of buyers with less pressure on budgets.

We could also see enhanced interest from those wishing to relocate to Jersey in the coming months as the UK’s new Labour government begins to set out its plans in greater detail.

The outlook is positive and I think we can look ahead to the rest of the year with some cautious optimism.