Housing market 'fragile due to global unrest'

Jersey's housing market is fragile as global unrest and the threat of rising interest rates cause a 5% drop in average prices [1]. Mortgage applications surged earlier this year as buyers rushed to lock in deals [1]. Average house prices in Jersey fell by 5% in the first quarter of 2026 compared to the same period in 2025 [1]. Estate agent Bradley Vowden said the market remains active but expects the next three to six months to be tougher as the impact of the Middle East conflict filters through [1]. Mortgage lender Gary Tumelty reported a surge in applications, from an average of 20 per month in 2025 to up to 50 per month at the start of 2026, as people sought to secure deals ahead of potential rate hikes [1]. "We are starting to see minor signs of a bit of a slowdown," Tumelty said, adding that people are "starting to get nervous" about forecasts of up to six Bank of England rate increases later this year [1]. The high cost of living compounds the issue, with the average three-bedroom house costing £695,000 [1]. Vowden noted that the average couple can only afford a one-bedroom flat, a situation he described as "a million miles away from people's affordability based on earnings" [1]. With a Jersey election approaching, Tumelty suggested politicians should consider stimulating the market for middle earners, who have lost tax breaks and mortgage interest relief, to support the island's long-term economy [1].