Guernsey House Prices Continue Upward Trend, Reports Skipton International

ST PETER PORT, Guernsey, November 11, 2011 /PRNewswire/ --

• Guernsey property prices continue year on year rising pattern
• Confidence holding up well, reports Skipton International

Average property prices in Guernsey stood 4.5% higher at the end of September 2011 compared to the same date last year, according to data released this week by the States of Guernsey. This third quarter performance means that values have continued to rise both on a rolling annul and year to date basis, with the rise recorded since the end of 2010 being around 4%.

The average mix adjusted price of properties sold, including any fixtures and fittings, now stands at £427,025, virtually identical to the figure at the end of June 2011. The mix adjusted price for property alone stands at £422,510, compared to approximately £418,000 three months ago.

There were a total of 219 local market house sales during the period, down from 252 at the end of June 2011.  Although volumes have slipped back slightly, the total sales completed was still higher than in the two quarters at the end of 2010 and the start of 2011. Within these figures, the number of transactions for one and two bed apartments rose, whilst other categories remained static or slipped back. In price terms, the greatest fall was in the £400,000 to £499,999 bracket, where the number of transactions dropped from 46 to 33. Average deposits contributed by buyers stood at 25%, meaning the average purchase was funded with a 75% mortgage loan.

Commenting on the latest Guernsey housing data, Nigel Pascoe, Director of Lending for Skipton International, the Guernsey and Jersey mortgage specialists said, "The economic headliner from around the world and Europe in particular have not inspired confidence recently and we may be starting to see  a degree of caution entering the market. Although prices have held up well, volumes have slipped back slightly, as some have decided to postpone moving."

In the UK as a whole, according to the UK Land Registry, over the year to September 2011, prices fell back 2.6%. On a month on month basis, prices eased by 0.3% between August and September as mainland buyers too were affected by issues of confidence stemming from Europe. Over the year, the London region was again the only one to show any gain, with a 2.7% rise recorded, whilst all other regions fell back in value, the worst hit being the North East where values fell by 8.2% during the 12 month period. In the South West, values dropped by 0.5% during September and 2.5% for the past 12 months.

Nigel Pascoe ends, "In Guernsey, we cannot totally escape the economic realities that are affecting the UK, European and world markets and so some weakness in prices was to be expected. However, compared to the UK housing market over the past year, the 4.5% rise recorded in Guernsey  represents an impressive performance against an average 2.6% fall onshore, a difference of over 7%. In unsteady markets such as now, it is important to ensure that you have the right mortgage for your own personal circumstances. Our commitment to provide a truly personalised service and to ensure our borrowers have the right product for their own needs is as vital as ever as a result."

For more information on Skipton International mortgage products, visit http://www.skiptoninternational.com or call 730 730

Editor's notes:

1. Skipton International Limited (SIL)  will lend on residential properties in Guernsey, Jersey and Alderney and the criteria on maximum loan to value is as follows: 

Next Generation Mortgage with third party security guarantee - 100%

Standard variable rate loans, fixed are loans, base rate tracker - residential only - up to 90%

Buy to let, base rate tracker residential - up to 80% 

     The maximum term is 25 years.

1. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
2. Skipton International Limited (SIL) is a wholly owned subsidiary of Skipton Building Society (SBS), the UK's 4^th largest building society with nearly £14 billion assets.
3. SIL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994, as amended.
   
4. Skipton Building Society has given an undertaking agreeing to discharge the liabilities of SIL in so far as SIL is unable to discharge them out of it own assets and whilst SIL remains a subsidiary of Skipton Building Society.
   
5. As a Licensed Bank in Guernsey, Skipton International Limited is a participant in the Guernsey Banking Deposit Compensation Scheme (the "Scheme") established by The Banking Deposit Compensation Scheme (Bailiwick of Guernsey) Ordinance, 2008 (the "Ordinance"). The following is a brief summary of the Scheme, but is not intended as a substitute for the actual wording of the Ordinance, a copy of which is available on request.

• The Scheme only applies to 'qualifying deposits', which broadly means deposits made by natural persons for their own benefit; with a few limited exceptions such as, for example, deposits made by trustees of retirement annuity trust schemes, the Scheme does not apply to companies, trusts, partnerships or charities.
• The Scheme will provide compensation in the event that a Licensed Bank is unable to repay its depositors. Under normal circumstances, payment will be made within 3 months of receipt of a valid claim form.
• Compensation is limited to a maximum of £50,000 per individual claimant; in the case of a joint account each depositor would be entitled.
• Total Scheme compensation in any five year period is limited to £100 million. If claims exceed this cap, compensation would be reduced pro rata. The cap also means that compensation in respect of any one bank cannot exceed £100 million.
• The amount payable may be reduced if the Bank has any contractual right of set-off against the account. The Scheme is entitled to recover compensation from any funds subsequently paid out by the Bank.
• Further information and a leaflet about the Scheme is available at:

Website: http://www.dcs.gg

Telephone: +44(0)1481-722756

Post: P.O. Box 380, St Peter Port, GY1 3FY

1. Deposits made with SIL are not covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000.

1. SIL places funds with SBS and thus its financial standing is linked to SBS. Publicly available information, including reports and accounts, is available from http://www.skipton.co.uk.
   
2. Copies of the latest SIL audited accounts are available on request.

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SOURCE Skipton International