More than half of Channel Islanders cite a preference to save equity than spend on rent as one of their most important reasons to own a property, according to new research.
Butterfield, which entered the Channel Island mortgage market earlier this year, commissioned Island Global Research to conduct a survey into islanders’ views on the local property market.
The results showed that, for many people, home ownership equates with stability.
Respondents were asked to give the top three most important reasons for wanting to own a property. Some 56% of people said they were motived by preferring to save equity than spend on rent; 55% of people cited the security of a stable home; and 30% of people said monthly mortgage repayments are cheaper than renting.
Finding a rental property in the Channel Islands has become more difficult recently due to high payments and a shortage of stock. The lack of options forces prices up even higher, which contributes to monthly mortgage payments often being cheaper than renting.
Ed Jones (pictured), Butterfield’s Head of Lending for the Channel Islands, said the figures highlight that home ownership remains an aspiration for islanders, even though property prices have risen in recent years.
“This survey has shown that, for many people, buying your own home is the more favourable option. Many people would rather put their monthly earnings towards a home that they will eventually own, rather than pay for something they have to leave at some point.
"We can clearly see that owning a home is not just a financial decision, it’s an emotional one too. People are pragmatic and realise that, in many cases, a mortgage is more cost-effective than renting, but they also want that sense of security that comes with property ownership.”