Planning reform needed to halt rent rises

The States revealed the cost of an average local market home had risen

Business leaders have called for planning reform to help halt the rising cost of rental properties in Guernsey.

Richard Hemans from Guernsey's Institute of Directors reacted to new figures from the States of Guernsey on the price of local properties.

He said: "without accelerated planning reform, expanded housing committee action and the rapid scaling of supply, price pressures and rental inflation will remain structurally entrenched."

Earlier this week the States revealed the cost of an average local market home had risen to £596,573, 2.8% higher than the previous quarter.

Richard Hemans is IoD Guernsey's lead on economics

The report said rents have continued to rise to £2,075 per month between April and June, which was 0.3% higher than the previous quarter, 5.3% higher than the second quarter of 2024 and 50.8% higher than five years previously.

Mr Hemans said rental costs remained "painful."

"Rents are likely rising faster than wages in Guernsey, pushing housing costs further out of reach for many and contributing to the island's persistently high inflation rate."