Guernsey House Prices Continue Upward Trend, Reports Skipton International

ST PETER PORT, Guernsey, August 11, 2011 -

• Guernsey property prices continue rises seen earlier in the year
• Market confidence continuing to return, reports Skipton International

Average property prices in Guernsey rose by a healthy 7.7% in the second quarter of 2011, compared to the same quarter in 2010, according to data released this week by the States of Guernsey. The overall trend both on a rolling annual and quarter on quarter basis now shows an improvement in values achieved.

The average mix adjusted price of properties sold, including any fixtures and fittings, now stands at £427,226, up from £424,714 at the end of March. The mix adjusted price for property alone stood at just under £418,000, compared to approximately £410,000 three months ago.

There were a total of 252 local market house sales during the period, up from 165 at the end of March 2011. Over a twelve month period to the end of June 2011, the volume of sales was up by 21. Within these figures, the number of transactions for apartments, bungalows and three bed houses all rose, but volumes for two and four bed houses eased very slightly. Average deposits contributed by buyers stood at 21%, meaning the average purchase was funded with a 79% mortgage loan.

Commenting on the latest Guernsey housing data, Nigel Pascoe, Director of Lending for Skipton International, the Guernsey and Jersey mortgage specialists said, “This quarter, as well as a welcome continuation in the upward trend of values, we have seen a significant jump in the volume of houses sold, which is a strong indicator of confidence in the market. The rise from 165 transactions to 252 over a period of just three months is important, as it was achieved across the market as a whole, with the biggest jump in financial terms coming in the £300,000 to £399,000 category, where transaction numbers jumped from 38 to 64.”

In the UK as a whole, according to the UK Land Registry, over the year to June 2011, prices fell back 2.5%, but they remained static between May and June. Over the year, the London region was the only one to show any gain, with a modest 0.8% recorded, whilst all other regions fell back in value, the worst hit being the North East where values fell by 7.1% during the 12 month period. In the South West, values dropped by 1% during June and just under 3% for the past 12 months.

Nigel Pascoe ends, “The Guernsey housing market appears to have decoupled from some of the trends in the UK, but we cannot remain totally insulated from the mainland. That said, local sales volumes are up and prices are moving ahead on a gradual but firm basis. However, we need to remain cautious, as future demand will continue to be influenced by the wider questions of confidence. On this issue, returning volatility in world markets has yet to be factored in.”

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

Editor‘s notes:

• 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.

• AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
• 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.
• SIL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994, as amended.
• 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.
• 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:                 www.dcs.gg
         Telephone:               +44(0)1481-722756
         Post:                    P.O. Box 380, St Peter Port, GY1 3FY

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

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

Media contacts: Please contact:
Guy Stephenson/Jennifer Duffy
Nacelle Limited
Tel:  +44(0)20-8333-9125
+44(0)7980-241-558
E-mail: jenny@nacelle.co.uk    

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