How Government Policy Keeps House Prices High in Jersey
Historical Archive
This article is preserved as part of the historical record of this blog. It reflects the author's views at the time of publication. The content has not been substantively altered, although the HTML, accessibility and formatting have been updated to meet modern web standards.
1.1(k)
The effect of category 1.1(k) is to provide a market and an underpinning of prices for high-value properties. By effectively ensuring a £1,000,000 price tag for the largest properties, the top of the housing market is established.
1.1(h)
By reducing the qualification period for category 1.1(h) of the Housing Regulations, the Government can artificially stimulate additional demand for mid-range properties. Conversely, by increasing the qualification period, it can artificially reduce demand.
Conveyancing
By granting a monopoly to the legal profession over conveyancing, unusually it is the only matter before the Royal Court in which a person is not permitted to represent themselves. In my view, this is inconsistent with the principle of access to justice recognised by the European Convention on Human Rights.
This monopoly adds a significant cost to every property transaction. In the United Kingdom, conveyancing costs typically range between £150 and £600. In Jersey they are substantially higher.
This represents not only an additional cost for purchasers but also a significant barrier to downsizing. The reduced capital released from the sale of a larger property discourages older homeowners from moving into smaller accommodation, leaving family homes occupied by one or two people and increasing pressure on the supply available to families.
Over-employment
By creating additional public-sector jobs of questionable necessity, the Government of Jersey increases demand for housing. These positions remove workers from the productive economy, leading to increased immigration to fill private-sector vacancies and creating further demand for the Island's finite housing stock.
The Future of House Prices in Jersey
Through the above, I trust it is self-evident that not only is the Government failing to enable average families to purchase average family homes, but it is actively maintaining policies that ensure such homes remain beyond the reach of many ordinary Jersey families.
The high cost of accommodation also damages the wider economy by forcing up the cost of labour.
It should be clear that, despite recent changes to the way in which housing statistics are produced, house prices are falling. Continuing difficulties in obtaining mortgage lending from insolvent banks, the absence of any realistic prospect of increases in real wages, and rising unemployment all suggest that prices are likely to continue their decline.
If house prices are falling during a period of significant inflation, the real loss in value is even greater than the nominal figures suggest. During the 1970s, property prices rose alongside inflation. Today, inflation and house prices are moving in opposite directions.
Buying a house currently is the surest way to lose your money.
References
- Government of Jersey, Average Earnings Report.
- Government of Jersey, Income Support Rates.
Historical Archive Update
This page was updated on 27 July 2026. The content has been preserved as originally published. This update was undertaken solely to modernise the HTML markup, improve accessibility, correct obvious spelling mistakes and grammatical slips, update obsolete links where appropriate, and bring the page into line with current web standards.
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