Swoffers negotiator Alex Stuart looks at the positive impact the recent change of government in the UK has had on interest in Guernsey’s Open Market.
Since Rishi Sunak announced the UK’s general election on 22nd May, Guernsey’s Open Market has seen a significant surge in demand for property. Initially, there was an uptick in general enquiries, and we saw many registered applicants reconnecting as polls indicated Labour were likely to win a majority. It didn’t take long for viewing numbers to increase and subsequently more sales being agreed.
Political transitions often bring promise of change and improvement; however, the recent turbulent political and social landscape in the UK has prompted many families and individuals to consider relocating. Interest in Guernsey’s Open Market has only intensified since Labour’s victory on 4th July. At Swoffers, we continue to see a large volume of new registrations coming through daily, with potential buyers and renters all at different stages of the relocation process. A main concern for many of our new applicants are the changes which may be introduced in October as part of the Government’s Autumn Budget, particularly as the Prime Minister recently warned it will contain ‘painful’ measures.
While many European countries offer favourable tax regimes for those leaving the UK, our experience shows that tax savings are not the sole consideration for those looking to relocate. Safety and security are high on the priority list for many and thankfully a safe environment to live and work is something we are proud to say Guernsey offers. In addition, one of Guernsey’s main attractions is its welcoming community which is something many of our applicants say the UK has lost in recent times. Hopefully, you have already experienced how welcoming our island is, or if you haven’t yet, I hope you do during your visit.
If business considerations are at the forefront of your requirements list, Guernsey offers excellent connectivity via air and sea, it is English speaking and operates in the same time zone as the UK. Post-covid, many relocators have taken the opportunity to continue working remotely from Guernsey, vastly reducing commuting times and offering the ability to transition from work to leisure in minutes.
For families moving with children, Guernsey also offers an excellent standard of education with both public and private schooling options alongside superb year-round extracurricular activities in music, the arts, and sports at various indoor and outdoor venues.
In addition to all of the aforementioned benefits is our favourable tax regime which offers a flat rate of 20% on income tax, no VAT, no capital gains tax and no inheritance tax. Guernsey offers a very attractive corporate tax environment to businesses registered on the island who generally benefit from a 0% tax rate on most income. There is no individual minimum tax contribution and various tax cap opportunities to benefit from, including a cap on worldwide income at £60,000 if you purchase a property on the island within the first 12 months of residence and pay £50,000 in document duty, which equates to a purchase price of £1,360,000 and above.
Guernsey’s housing market is divided into Local and Open Markets. The Local Market is reserved for those who are locally qualified or on an employment permit, while the Open Market is available to anyone with a British passport or right of abode in the UK. Through an entrepreneurial visa it is possible for other nationals to purchase and live in Open Market properties. If this would be of interest to you, we would be delighted to advise further.
The Open Market constitutes only a small section of Guernsey’s total property market, equating to roughly 1600 homes. There are properties available to suit all requirements with prices generally starting from around £600,000 ranging to over £15,000,000 at the top end of the market. Renting property on the Open Market is also possible, offering a favourable introduction to island life. Given the current demand, we recommend registering your property interest with us to ensure you’re informed of suitable options as soon as they become available.
At Swoffers we have the most knowledgeable and experienced team of Open Market negotiators with five dedicated members of staff solely focused on providing the best possible service to our vendors and applicants. We have the largest range of Open Market property available, and we are proud to be able to say that we consistently sell the most Open Market property of any agent on the island. So far this year, we have been responsible for 75% of sales achieved.
Relocating to Guernsey could be a smart and rewarding decision if you are looking to make a change. If you are considering making the move or simply want to find our more, please do get in touch; we would be delighted to chat through your options and give you a flavour of what life in Guernsey can offer.
