Guernsey's local market property prices rise by 7.7%

The number of local market properties sold in the second quarter of 2011 was up on the previous year

The average price of a local market property in Guernsey has risen by 7.7%, the Policy Council has said.

According to the council, the price of a home climbed to £427,226 in the second quarter of 2011.

This was compared to £396,509 in the same quarter of 2010. The number of transactions seen during these periods also rose, from 231 last year to 252.

Open market sales remained slow, with only six sales in April, May and June, averaging £1,121,544.

Estate agents have expressed fears in recent months that a review of Guernsey's population policies has undermined confidence in open market housing.

Currently, only those with residency qualifications are allowed to live in Guernsey's local market properties, meaning those without them must live in open market dwellings.

The States is due to debate a report by the Population Policy Group before the general election in April 2012.