Increasing financial barriers are making it increasingly difficult for first-time buyers in Jersey to achieve homeownership. A recent update from Housing Minister Sam Mézec has revealed the impact of rising house prices, high living costs, and stagnant wages on the ability of younger Islanders to enter the property market. The First Step assisted-purchase initiative, launched to support these buyers, has seen varied results since its inception.
First Step Initiative Update
Minister Mézec reported during a scrutiny hearing that the First Step scheme, which partners with Andium Homes, has provided assistance to 65 buyers over its two-year duration. The initiative is backed by £10 million in government funding, allowing eligible participants to receive up to 40% off the purchase price of an open-market property. Despite this support, funding for the scheme has now been exhausted and is currently on hold, although Minister Mézec expressed a desire to see it reinstated.
The average age of beneficiaries from the scheme is currently 38, with the youngest recipient being 27 and the oldest at 52. This demographic shift underscores a significant change in the profile of first-time buyers compared to previous generations.
Challenges for Younger Buyers
Deputy Tom Coles, vice-chair of the Environment, Housing and Infrastructure Scrutiny Panel, emphasized that the statistics from the First Step program only reflect one facet of a broader issue. He noted that multiple assisted-purchase initiatives exist in Jersey, indicating a general trend of increasing difficulty for young people looking to buy in the private market. Coles highlighted that the economic landscape, including the cost of living and housing prices, is creating a challenging environment for prospective homeowners.
Recent data from the Office of the Superintendent Registrar revealed a worrying trend: the number of births in Jersey reached its lowest point since 1945, with just under 600 babies born in 2025. This represents a 2.5% decrease compared to the previous year and a striking 30% drop since 2015. Coles suggested that delayed access to homeownership is contributing to the declining birth rate, as many individuals prioritize financial security before starting a family.
Another panel member, Deputy Alex Curtis, noted that the challenges facing first-time buyers in Jersey are not unique to the island. He pointed out that many western and European countries are experiencing similar trends, with the age of homeownership steadily increasing. Curtis remarked that while many young people are considering leaving Jersey for more affordable housing options, others remain committed to returning to the island to start families.
Soaring Property Prices
Statistics Jersey reports stark increases in property prices over recent years. The average price of a two-bedroom house in 2006 was £303,000, but by the end of 2025, this figure had risen to £552,000. Prices for two-bedroom flats and three-bedroom houses have similarly escalated, now averaging £496,000 and £732,000, respectively. While the most recent data indicates a slight overall decrease in property prices—down by 1% from the previous year—many buyers still find themselves unable to afford homes that are within their financial reach.
Despite this decrease, a household earning the average net income in Jersey would still struggle to afford a mortgage for a median-priced two-bedroom flat or house. From 2001 to 2020, real earnings remained nearly flat, increasing by just 0.7%, leaving many potential buyers facing a significant financial hurdle.
Nicky Totty-Golding, head of residential sales at Gaudin & Co, noted that first-time buyers are now frequently in their late 20s to early 30s, a shift from previous decades. She attributed this change to rising living costs, which include rent, food, and childcare expenses. Totty-Golding emphasized that the challenge of saving for a deposit has become increasingly daunting, as it can take many years to accumulate the necessary funds.
Jason Olver, a residential sales negotiator at Gaudin & Co, pointed out the difficulties faced by young adults in their early 20s who are attempting to buy homes on a single income. He remarked that without family support or inheritance, many couples must combine their incomes to qualify for a mortgage, highlighting the ongoing struggles for young buyers in Jersey.
The situation facing first-time buyers in Jersey illustrates a growing concern about affordability and accessibility in the housing market. As financial pressures continue to mount, the future of homeownership for younger generations remains uncertain.
