Local Market property sales continue to be buoyant although prices remain competitive.

The latest Quarterly Residential Property Prices Bulletin for the first quarter of 2019 is published today.  There were 177 Local Market transactions during the first quarter of 2019, 59 fewer than the previous quarter but 37 more than the same quarter of 2018. This was the highest number of first quarter transactions since 2007.

‘Swoffers has had a really busy start to 2019 and this is reflected in the latest sales figures,’ says Andre Austin, Swoffers Director.

‘Average purchase prices will always fluctuate depending on the number of houses sold and at what level, but it is interesting to note that the Q1 average purchase price of £425,394 is 4.4% higher than the first quarter of 2018.

‘Competitively priced properties presented well are selling quickly and at the moment the problem is one of lack of supply at the £500k to £750k section of the market where we have lots of buyers but a limited number of properties available,’ says Andre.

The States of Guernsey has also published supplementary data on property rental and purchase prices.

Average purchase prices for one bedroom flats, three bedroom bungalows and four bedroom bungalows/houses increased between 2017 and 2018 whereas two bedroom flats and bungalows and two and three bedroom houses decreased.

The total turnover on purchased Local Market properties in 2018 was 3.9% which was 0.5 percentage points higher than in 2017. Two bedroom houses had the highest turnover (at 5.4% of the total stock of that property type).

Average rental prices also increased across all these categories.

The data also shows that the raw median price (realty only) of the 18 Open Market transactions in the first quarter of 2019 was £1,291,875 compared with £746,000 in the first quarter of 2018, when there were 19 transactions.

‘Interest in the Open Market remains high at all levels of the market,’ says Shauna Clapham, Swoffers Director.

‘Our experienced Open Market sales team has welcomed lots of new enquiries this year but prices remain competitive.’

Swoffers has unrivalled expertise in Guernsey’s property market. We are 100% locally owned, we’ve been in business since 1972 and employ nearly 30 staff, making us the largest and most experienced team of property experts in the Island.

The Local Market team alone has more than 56 years of experience between them.

‘We know that buying and selling your home can be stressful, but our dedicated team will guide you through the process and answer all your burning questions,’ says Andre Austin, Swoffers Director.

‘What makes us different is our fusion of traditional values and customer service with the latest technology, making them work together to provide the best service for you.

‘Through our comprehensive database of clients, our state-of-the-art website, targeted digital marketing campaigns and social media feeds as well as traditional face-to-face communications, we can access the widest range of properties and connect with the widest range of buyers and sellers to offer you the highest quality service.

Let us find your perfect home.’

It’s been an exciting month for Swoffers clients Michael and Sally Parks.

Not only did they agree the sale of their house just a matter of days after it went on the market, but they have also just been announced as winners of the Swoffers ‘List to Win a Holiday’ prize draw. The couple wins a £3,000 voucher from World Travel to spend on a holiday of their choice.

‘We were amazed, shocked and delighted when we found out we had won,’ says Mrs Parks.

‘We haven’t decided yet where we are going to go as we want to get the house sale agreed, but we are hoping to have some autumn sunshine; maybe Barcelona or Croatia – somewhere with some history and culture as well as sunshine.’

Mr & Mrs Parks praised the work of the Swoffers team in managing their house sale. They were particularly surprised at the immediate impact posting the property on social media had with their property receiving lots of interest.

‘We have been very impressed with the professionalism, friendliness, approachability and most of all the enthusiasm of the Swoffers team,’ says Mrs Parks.

‘More than 500 people were eligible to win our competition and Mr & Mrs Parks were the first names out of the hat,’ says Swoffers Director Andre Austin.

‘We are delighted for them and hope they thoroughly enjoy their chosen holiday. We know that buying or selling your home can be a stressful experience but the team at Swoffers is always ready to answer any questions or help in any way to make the whole process as stress-free as possible. Just pick up the phone or send us an email and we will help you find your perfect home.’

Pictured above Swoffers Local Market Negotiator Scott Ingrouille hands over the prize holiday to winners Michael and Sally Parks.

The last year has seen an upsurge in interest in Open Market properties in Guernsey and Swoffers has had one of its busiest periods for many years with a significant increase in sales in the last quarter of 2018 and early part of 2019. A substantial number of sales involve people relocating to the island for the first time.

‘There are many reasons why people are choosing to come and live in Guernsey,’ says Craig Whitman, Managing Director of Swoffers.

‘In general terms, it tends to be a combination of things. Some clients have told us that the uncertainty in the UK over Brexit is what is driving them, whereas others are attracted by the Island’s quality of life and security.

‘Guernsey’s position on the doorstep of Europe with good connections to the UK makes us particularly attractive, as does the island’s reputation as a well-regulated, stable jurisdiction,’ says Craig.

‘It’s also easy to make the move to Guernsey; we have simple entry requirements for new residents and offer a number of incentives for those relocating.

‘It is impossible to say whether Brexit will be good for Guernsey in the long run but right now our message to anyone thinking of relocating, for whatever reason, is take a close look at what Guernsey offers. The experienced team at Swoffers is ready to help you find your perfect island home.’

It’s good news for buyers and sellers across Guernsey’s Local and Open property markets as sales continue to be buoyant in the first quarter of 2019.

Figures compiled independently by Unusualities of Guernsey, reveal sales activity in the Local and Open Markets was at its highest first quarter levels since 2011 and 2007 respectively.

There were 193 Local Market houses and flats sold in the first quarter of 2018, up from 151 for the same period last year and one fewer than the 194 recorded in the first quarter of 2011.

‘The team at Swoffers has had a really busy start to 2019, continuing on from last year, as we are starting to see increased confidence in the property markets,’ says Swoffers Director, Spencer Noyon.

‘We are seeing cash buyers who temporarily moved into rental accommodation now stepping back onto the property market and increased demand generally across all sectors.

‘The problem now is one of supply and demand as sales stock isn’t being replenished quickly and new-builds are not catering for all areas of the market,’ says Spencer.

The newly published statistics for Q1 also indicate an increase in the median price for both houses and flats on the Local Market.

‘It’s difficult to draw any meaningful conclusions from the average prices published in the statistics but I would say that in general terms we are looking at an uplift of circa 3-5% over the last year.

‘However, prices are probably back to levels seen in 2011-2012 following falls over the last few years.

‘We should remember though that people are looking to buy and sell in the same market and are generally looking for a home rather than an investment and so important factors for vendors to consider are pricing your property sensibly, presenting it well and being flexible about viewings. The experienced team at Swoffers are here to provide help and guidance through every step of the buying or selling process and aim to try to make it as stress-free as possible.’

For the Open Market, Unusualities of Guernsey recorded 19 transactions in the first 3 months of 2019, which is seven more than the first quarter of 2018 and the highest total for a first quarter since 2007.

‘We are continuing to build on a successful 2018 and interest remains high from people looking to relocate to Guernsey for whatever reason, be it lifestyle, business or the stable, secure environment the Island offers,’ says Craig Whitman, Swoffers Open Market Director.

‘Swoffers remains the number one agent of choice for buyers and sellers in both the Local and Open Markets and we always strive to deliver a high-quality, knowledgeable service and, of course, make sure we find people their perfect home.’

During 2018 there was a net increase in the island’s domestic property stock of 232 – the highest annual increase since 2014. This was made up of 287 new units and the removal or demolition of 55 units.

‘We always have clients looking for new build properties and so it’s good to see this increase in the island’s housing stock,’ says Swoffers Director, Andre Austin.

‘What’s important though is that we see a range of new properties being built and not just one-bedroom apartments or two to three-bed houses. We need new build stock of good quality, larger houses for families looking to upsize.’

The Guernsey Annual Residential Property Stock Bulletin, published today, shows that almost a third of all domestic property units (31.7%) had 3 bedrooms. Nearly 60% of units were owner-occupied, around 29% were privately rented, just over 9% were affordable social rented or partially owned, with the rest being other tenure types or vacant.

‘It’s interesting to note that less than 1.5% (392) of all properties are specifically for people over the age of 55,’ says Andre.

‘This is also an area that possibly needs further consideration as the island has an increasingly ageing population.

‘But in general it’s positive for the island’s economy to see record numbers of new-builds and it will be interesting to see if this trend continues.

‘Anyone interested in purchasing a new build, or wanting to find out what new properties might be in the pipeline, is welcome to contact our experienced sales team on 711766 or email sales@swoffers.co.uk

 

 

A report published in the UK today states that ‘gazundering’- where a buyer lowers their offer for a home at the last minute – is becoming a growing problem.

Gazundering can happen just before a sale is set to go through, with sellers sometimes feeling under pressure to accept the lower price to stop the deal collapsing.

So, should we be concerned about gazundering here in Guernsey? The simple answer is ‘no’.

Swoffers Director Spencer Noyon explains.

‘The team at Swoffers always has the best interests of our clients at heart and will do everything to make sure that the selling or buying process is as smooth and simple as possible.

‘The market is busy at the moment with lots of sales progressing quickly and so very little reason for anyone to pull out at the last minute,’ says Spencer.

‘Also, the Guernsey system of buying and selling a house is different from the UK. When you make an offer on a property and it is accepted an ‘operative date’ is set, usually for around three to four weeks after your offer is accepted. This is when conditions of sale are signed or become unconditional. Once conditions of sale are signed unconditionally, both the buyer and seller are locked into the deal and if either one withdraws, the 10% deposit must still be paid. The completion date, which is when the buyer goes to court to complete the sale, is agreed between all parties and is often a number of weeks after the operational date.

‘It is possible that the agreed offer may be renegotiated following the completion of a professional survey on the property if it highlights any necessary works. This is not gazundering and usually happens before conditions of sale are signed,’ says Spencer.

‘Both buyers and sellers should feel reassured that the team at Swoffers will be with you through every step of the process and that our aim is to make buying and selling your home as simple and as stress-free as possible. If you have any questions about the process or would like some advice and guidance please don’t hesitate to give one of our experienced negotiators a call on 711766.’

‘In the global context of political upheaval and slowing economic growth, businesses and individuals are seeking certainty and stability.

Guernsey can offer this stability, in spades.

With a 900 year history as a Crown Dependency, which is not about to change, and being already outside the EU, Guernsey is well-placed to weather the current turbulence.

As a jurisdiction with a mature political and legal system and a competitive tax system, Guernsey offers a safe haven in these troubled times.

But that safety is more than simply stability in an uncertain world – Guernsey has massive ‘social capital’, the cultural sophistication that makes it one of the most law-abiding places on earth.

In Guernsey you will find road junctions signposted as ‘filter in turn’, which means exactly what it says.  There is no need for expensive traffic lights if road users will extend the courtesy to each other of taking turns to cross a junction.

In Guernsey you will see boxes on roadside banks, containing garden produce and home-made products such as jam.  Beside these boxes there will be an ‘honesty box’, in which customers can deposit the price of the goods being sold.  This system of ‘hedge veg’ can only operate because of the basic integrity of the local population.

The respectful, ‘good neighbourly’ culture also means there is very little social division.  In Guernsey, you will not encounter the negative attitudes that some communities display towards newcomers.  On the contrary, the people of Guernsey are generally open and welcoming.  And because they are also generally well-travelled, they have a cosmopolitan outlook.

For this reason, some visitors describe Guernsey as being like England was in the past.  But Guernsey is not a backwater, it is a sophisticated offshore financial centre, operating at the cutting edge of the funds, captive insurance and fiduciary industries, to name but a few examples.  The basic integrity of the island forms part of the reason for Guernsey’s current success in financial services.

Other factors in that success are Guernsey’s convenient location (about an hour to London, and within sight of the Continent), its time zone (permitting business transactions with every part of the world during the working day), the English language and English commercial law.  The total absence of corruption is also an important factor. But more generally, Guernsey industries have a well-earned reputation for quality.

Finance is not the only driver in Guernsey’s economy, of course.  The island is home to many businesses successful in other fields.  In fact, the largest private sector employer on the island is not a bank; it’s Specsavers, the multinational optical group based on the island.  Guernsey also has massive digital bandwidth, and sits close to the spine of the internet, making it ideal for digital industries of all kinds.

Guernsey is committed to maintaining itself as low tax jurisdiction – there are no capital taxes in Guernsey, there is no inheritance tax, there is no general sales tax or VAT. And, importantly, there is a clear commitment not to bring in such taxes.  Guernsey does not levy a net wealth tax. Guernsey resident individuals pay income tax at a flat rate of 20% and a Guernsey resident individual can elect for a cap on their income tax liability.

Central to our economic strategy is a commitment to supporting Guernsey’s Open Market.  We recognise that Open Market residents can make a huge contribution to our economy and also to island life.  We want to ensure it is as straightforward as possible for new residents to move to Guernsey, and to start new businesses here.

One of the good things about being a small jurisdiction is that members of the public can contact all of the people they need to meet (in the same room at the same time if necessary), to solve their problems.  Guernsey is too small to be mediocre.’

 

You can contact Charles Parkinson – Minister for economic development via email: charles.parkinson@deputies.gov.gg

The States of Guernsey has announced that the Economic and Financial Affairs Council of the European Union (ECOFIN) has reaffirmed its previous decision that Guernsey is a cooperative jurisdiction with respect to tax good governance.

ECOFIN has published an updated EU list of non-cooperative jurisdictions and confirmed that Guernsey is not one of them. This is on the basis that Guernsey has met its commitment to address general concerns raised by the EU in 2017 in relation to legal economic substance requirements. This confirms that not only does Guernsey meet the international standards of tax transparency, the principles of fair taxation and is committed to fighting base erosion and profit shifting, but now also addresses any concerns that profits were not commensurate with the actual economic substance in the island.

A media release issued by the States of Guernsey states: ‘ECOFIN’s decision also follows a further commitment made by Guernsey in December 2018 to work with the EU on sharing beneficial ownership information, such as through an integrated platform.

‘The legislation introduced in Guernsey to meet this commitment to further demonstrate economic substance by 31 December 2018 was assessed by the EU’s Code of Conduct Group (Business Taxation) (‘the Code Group’) in January 2019. The Code Group recommended that it be recognised that Guernsey has met its commitments to implement tax good governance principles. This was agreed by ECOFIN at its meeting held on 12 March 2019.’

Deputy Gavin St Pier said:

“I welcome this decision. I was confident that any objective process would produce this outcome. We have consistently maintained as a matter of fact, that we are a jurisdiction of substance. We have worked closely with the EU, Jersey and the Isle of Man to demonstrate the existence of robust legal substance.

“I hope that it is now clear to EU Member States that they can have confidence in the work of the Code Group and consequently there is no further role for national blacklists, the basis of which are often arbitrary and prepared without any dialogue.

“As we have repeatedly said, including most recently to UK MPs in another context, Guernsey does not facilitate financial crime, including tax fraud. We adopt the highest standards and we are willing to cooperate with our neighbours to address reasonable concerns. We remain committed to ongoing co-operation and dialogue with the EU institutions. We stand ready help other jurisdictions, including any relevant EU Member States, develop and implement substance requirements.”

It is not possible to predict how Brexit – the process and the eventual outcome – will change in the coming weeks and months. However, it is more certain what Brexit will mean for Guernsey, whatever decisions are made in the UK and EU.

Here’s an excerpt from Policy & Resources Minister, Gavin St Pier’s article recently published in our Open Market Review which highlights how the Island is planning for all scenarios.

 

‘These are extraordinary times for the British body politic. The political atmosphere in the UK is febrile. Every day another twist is added to the plot. Novelists and screenplay writers will try to recreate this level of political high drama and political scientists will analyse it for decades to come. Closer to home, the government of Guernsey is engaged with the UK Government as it develops its position. We try to be one step ahead by planning for a range of outcomes and are ready to react to whatever results from the UK parliamentary deliberations. This helps us plot our own path; one that works for Guernsey’s own interests. Guernsey’s system of government relies on consensus and compromise to make decisions. We do not have a formal organised opposition. The consensus and political stability that Guernsey has is something that the UK Government is now seeking for itself.

Guernsey and Europe

The Bailiwick of Guernsey is not part of the UK, is not part of the EU and was not part of the Brexit debate for the 2016 referendum. This means that we face different challenges to the UK. The UK is constitutionally responsible for the island’s formal international representation and so has a role to represent our interests in the UK’s exit negotiations with the EU and in any negotiations for a new economic partnership with the EU.

Our relationship with the EU is described in Protocol 3 to the UK Accession Treaty, it places us in the EU Customs Union with the UK and provides for free movement of goods. Other parts of the EU treaties do not apply directly to us.

This relationship has served us well, from the years of horticulture and hothouses, electronics and e-business booms, family holidaymakers and honeymooners, right through to the mature, well-respected and diverse financial services sector we have today.

Deal or No Deal – creating certainty from uncertainty

Over the last two years, the States of Guernsey has been working with the UK Government to carry out extensive preparations for all scenarios, including ‘no deal’.

The UK’s exit will end the Protocol 3 relationship with the EU; which will end the relationship the Crown Dependencies have with the EU Customs Union. In order to safeguard the customs relationship with the UK, the government of Guernsey signed a new customs framework with the UK Government in November 2018, to take effect when the UK leaves the EU. This ensures that Guernsey can continue to enjoy tariff-free trade with the UK, whilst maintaining regulatory autonomy and fiscal independence. This provides continuity for Guernsey and certainty for businesses and consumers.

The terms of trade with the EU will be dependent on the outcome of the UK’s negotiations with the EU. The Guernsey and UK Governments are in dialogue in order to seek the extension of the UK’s membership of the World Trade Organization (‘WTO’) after the UK has established itself as an independent member outside of the EU. The new customs arrangement protects a centuries old constitutional relationship which allows for the free movement of goods with the UK, described in a series of historic Royal Charters. This same relationship also allows for the movement of people within the UK.

Guernsey is part of the Common Travel Area with the UK and Ireland, alongside the other Crown Dependencies. The UK, EU and Crown Dependencies have all committed to protect the Common Travel Area, and so we will continue to enjoy free movement within the UK and Ireland whatever the outcome. We are working closely with the Home Office on a future immigration regime that respects the Common Travel Area and takes into account Guernsey’s interests.

We have already made a political commitment to respect the rights of EU nationals resident in Guernsey on ‘exit day’ and will be bringing forward a ‘settled status’ scheme like that being launched in the UK. Those citizens are a welcome and important part of our community. Guernsey is a third country to the EU in respect of services and so its trading relationship will be unchanged by the UK’s exit from the EU. Market access based on ‘equivalence’ has been negotiated on a case-by-case basis. This provides stability. We are looking to work in partnership to embrace the opportunities created by the UK having an independent trade policy, including considering how we could take part in Free Trade Agreements alongside the UK. This could offer new opportunities for preferential access to new markets. Whilst this planning has been undertaken with a range of outcomes in mind, we are considering the practical effect that a ‘no deal’ Brexit would have. We are working in lock step with the UK and other Crown Dependencies to ensure that our contingency planning will minimise any possible disruption that a ‘no deal’ Brexit would have on supply chains. This includes the logistical challenges that may occur in respect of the movement of goods into the UK and onwards to Guernsey.

In the autumn of 2018 in an exchange of letters with the UK Prime Minister, the UK Government repeated previous assurances that the longstanding constitutional relationships between the UK and the Crown Dependencies will not change. The Prime Minister recognised the long-standing close trading relationships that we share. Guernsey is an important economic partner to the UK; just last year the UK’s Office of National Statistics reported that it was the fastest growing market for UK imports of goods and services between 2010 and 2017, with increases of 456% to £2.4bn.

Whilst we are uncertain about the outcome of the UK Brexit debate, we can be certain about the stability that Guernsey inherently has and that Guernsey’s government has created during the last two years. We stand ready to respond to whichever path the UK choses to take as it leaves the EU.’

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