After having to negotiate a few twists and turns in the last 18 months or so, there’s a definite sense that Jersey’s property market is beginning to return to the straight and narrow.

As we head towards the end of the year, confidence appears to be building and activity is beginning to gather pace.

Lower monthly mortgage costs are starting to feed through into the local market, while we are also seeing more enquiries at the higher end.

What has been especially encouraging is the range of properties that we’ve had on our books – from apartments and farmhouses to large family homes and coastal retreats.

UK tax changes

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.

There is no capital gains or inheritance tax in Jersey, while the maximum personal tax rate is 20%. There are also exemption thresholds and a marginal rate of tax to protect people on lower incomes. The goods and services tax in Jersey meanwhile is 5%, with only a few exemptions.

The standard rate of corporate income tax is 0% with exceptions for financial service companies (10% tax rate), utility companies (20% tax rate) and large corporate retailers (varies depending on the profits, maximum 20%). Company income from property or property development is also taxed at 20%.

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 Jersey is also very attractive.

The island is a safe and secure place to live and work, with a friendly close knit community. For those with children the quality of schooling – both in the state and private sector – is excellent, while you can also be at the beach within minutes of leaving home or the office.

The island has a vibrant social scene, with a great selection of bars, pubs and restaurants alongside a variety of sports clubs and other groups specialising in music and the arts. 

For those who need to travel for business there is excellent connectivity via air and sea – with direct flights to London in a little over an hour. 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, with more sales agreed.

Improving mortgage rates

Historically, activity at the higher end of the market tends to create a bit of a domino effect and drive activity in the local market. As people move up the property ladder it invariably frees up stock further down, which is always a welcome sign.

Although the market will likely remain sensitive to short-term fluctuations in the cost of debt, a steady improvement in mortgage affordability should allow confidence to continue to grow into the new year.

Greater activity should help to underpin house prices, but for those hoping to sell, sensible, realistic pricing will continue to be key.

If the last few years have taught us anything it’s that we never quite know what’s around the corner – but I think we can be cautiously optimistic about the road ahead.