Savills News

Why Guernsey continues to be a safe harbour for property

Stuart Leslie, head of residential sales at Savills Guernsey, discusses latest trends in the island's property markets.

After having to navigate some fairly choppy waters over the last 18 months or so, there are signs that Guernsey’s property markets are beginning to return to a more even keel.

As we head toward the end of the year and into 2025 there’s a sense that momentum is beginning to gather pace.

In the Local Market, lower monthly mortgage costs are beginning to feed through into improved confidence, prompting more sales, while the Open Market has also seen an increase in activity.

Improving picture

The steadier market is reflected in the latest States of Guernsey property bulletin. In the three months to the end of September, there was an increase in the number of sales agreed on both the Local and Open Markets, while average prices also remained robust.

Increased Open Market activity

While more severe reforms were shelved, changes to the UK’s non dom tax regime in the Autumn Budget have caused some individuals to question where they want to have a base. Even before Labour’s election win we experienced an uplift in enquiries from potential buyers.

Guernsey offers a flat rate of 20% on income tax, with beneficial tax caps available for new residents, no VAT or capital gains tax and no inheritance tax. The island’s businesses can also take advantage of no corporation tax for companies registered in the island.

Balanced lifestyle

Of course, many European countries offer favourable tax regimes – it is not the only consideration when people are looking to relocate.

Fortunately the lifestyle on offer in Guernsey is also very attractive.

Visitors often remark on our welcoming community and friendly atmosphere, while the island continues to be a safe and secure place to live and work. There is also an excellent selection of highly rated state and private schools for those with children.

Short commutes mean you can be at the beach within minutes of leaving the office, while the island also has a variety of sports clubs and a rich tradition in music and the arts.

For those who do need to do business there is excellent connectivity via air and sea – with direct flights to London City airport in under 90 minutes. Many people work remotely, visiting the mainland perhaps once or twice a week.

We continue to see a large number of new registrations and viewings and we expect this activity to gather further momentum as we head into 2025.

Lower interest rates

For the Local Market, a steady improvement in mortgage affordability should allow house price growth to gain traction into the new year and beyond. 

The market will likely remain sensitive to short-term fluctuations in the cost of debt, so for those hoping to sell, sensible, realistic pricing will continue to be key.

But in general we can afford to be cautiously optimistic about the months ahead.

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