Latest news with #RichardHemans
BBC News
29-07-2025
- Business
- BBC News
Institute of Directors Guernsey reacts to inflation slowing
The Institute of Directors in Guernsey has reacted after inflation slowed to 3.9% between March and rate, measured by the Retail Price Index (RPI), is 1.4% lower than the same time last year and 0.3% lower than March 2025. Richard Hemans, the Institute of Directors Guernsey's lead on economics, said the island "must accelerate housing development, expand workforce capacity, and improve productivity in key service sectors, while fiscal discipline, targeted immigration, and greater competition in key markets are also essential to ease inflationary pressure".He said the inflation rate was "lower than the UK" which was "a welcome development but not yet a cause for complacency". The bulletin showed Guernsey's housing costs increased by 6.9% and contributed 1.3 points to overall inflation. Household services and food were the other major drivers of Guernsey inflation, rising 5.7% and 4.4% inflation, excluding food and energy, was 3.2%, down from 4.2% in institute represents business leaders and directors in Hemans said: "The reduction in core inflation underlines the impact of volatile food and energy prices on local inflation, with recent electricity price increases contributing 0.3% to the latest figures. "Core inflation is therefore coming down faster than the headline figure suggests." 'Avoiding wage-price spirals' He added that "services inflation accounts for 2.9% points of Guernsey's 3.9% RPI, compared with 1.0% from goods. "The biggest service-sector pressures stem from rents, fees and subscriptions, mortgage interest, electricity, and domestic and personal services — areas where market concentration and labour shortages are driving persistent cost increases."He said it highlighted the structural challenges faced by Guernsey's housing and labour said the "States' forecast of 3.2% inflation by year-end looks achievable, but further progress will depend on easing housing costs and avoiding wage-price spirals."Persistent inflation at current levels risk eroding competitiveness and living standards," he added.
BBC News
26-06-2025
- Business
- BBC News
Confidence in Guernsey economy growing, survey suggests
Business leaders in Guernsey have more confidence in the economy than six months ago, despite ongoing financial pressures, a survey by the island's Institute of Directors (IoD) than two thirds (67%) of respondents said they expected their costs to increase over the next 12 months, consistent with the last although businesses still plan to invest and hire more staff, their expectations for profits have improved marginally - but remain negative IoD said the survey aimed to build a picture of trends and the impact of changing local and international factors on businesses in the bailiwick. Richard Hemans, the IoD's local lead on the economy, said: "Confidence remains highest in finance and professional services but has fallen in construction and retail."Despite a backdrop of ongoing challenges, it's encouraging to see the continued resilience of Guernsey's businesses, particularly their willingness to maintain investment and employment plans." Mr Hemans said the information would give useful economic data to Guernsey's newly elected Deputies and civil said business leaders wanted to see "strong leadership, bold decisions, and faster action on infrastructure, housing and connectivity" from the new survey highlighted the cost and availability of labour was now the top negative impact for members, overtaking air and sea links, although the latter remained a major concern.
Yahoo
15-05-2025
- Business
- Yahoo
Rental prices 'painful' for average earners
Guernsey's Institute of Directors (IoD) has described the island's rental prices as "painful", leaving little money left over for tenants after paying their rent, food, and bills. It follows the release of the government's Property Prices Bulletin, which shows the average local market rental price was £2,068 a month in the first quarter of 2025. That figure is 1.5% higher than the previous quarter, 8.2% higher than the first quarter of 2024 and 51.7% higher than five years ago. Richard Hemans, the IoD lead on economics, said comparing the figure to the most recent average income data showed renting would cost 55% of a persons salary. Mr Hemans said rental prices had been a "major driver of inflation" in the island and had increased "much faster than in Jersey". "The ongoing strength will continue to put upward pressure on local inflation," he said. "The cost of renting a property in Guernsey has increased by 52% since the pandemic as the population has grown and not enough properties have been built. "The last figures from Q3 2024 show that rental costs consume a painful 55% of earnings, leaving little scope for discretionary spending once essential purchases and taxation is paid." He added: "Given that rental costs have likely outpaced earnings over the last six months, this metric will have deteriorated further." The Property Prices Bulletin also showed the average price for a local market property was £580,412 at the start of the year, 3.2% lower than the first quarter of 2024. "The cost of renting a property is still rising fast, whilst the affordability of ownership is improving although still elevated," said Mr Hemans. "The latest figures confirm what we already know in that we are not building enough homes, which is the key driver of price and affordability pressures. "This has to remain one of the top priorities for the next States and is fundamental to our social and economic prosperity." He said 71 new property units were created over the last 12 months and 527 over the last five years, which was "significantly lower" than the target of 310 units per year, or 1,550 over five years. "Over the last quarter the number of property units fell by five," said Mr Hemans. "This explains why Guernsey house prices will continue to remain high and strong in the context of full employment, robust earnings, falling interest rates and a growing population driven by positive net migration. He added: "The scale of the housing challenge has been recognised, and momentum is building to address the issue, but over the short term this disequilibrium will ensure that prices remain elevated whilst transactions will remain below historic levels." More news stories for Guernsey Listen to the latest news for Guernsey Follow BBC Guernsey on X and Facebook and Instagram. Send your story ideas to Plans submitted for 101 homes near cinema complex Guernsey adds 'one affordable home in two years' Slight drop in Guernsey rent and house prices Guernsey Property Prices Bulletin Institute of Directors
Yahoo
15-05-2025
- Business
- Yahoo
Rental prices 'painful' for average earners
Guernsey's Institute of Directors (IoD) has described the island's rental prices as "painful", leaving little money left over for tenants after paying their rent, food, and bills. It follows the release of the government's Property Prices Bulletin, which shows the average local market rental price was £2,068 a month in the first quarter of 2025. That figure is 1.5% higher than the previous quarter, 8.2% higher than the first quarter of 2024 and 51.7% higher than five years ago. Richard Hemans, the IoD lead on economics, said comparing the figure to the most recent average income data showed renting would cost 55% of a persons salary. Mr Hemans said rental prices had been a "major driver of inflation" in the island and had increased "much faster than in Jersey". "The ongoing strength will continue to put upward pressure on local inflation," he said. "The cost of renting a property in Guernsey has increased by 52% since the pandemic as the population has grown and not enough properties have been built. "The last figures from Q3 2024 show that rental costs consume a painful 55% of earnings, leaving little scope for discretionary spending once essential purchases and taxation is paid." He added: "Given that rental costs have likely outpaced earnings over the last six months, this metric will have deteriorated further." The Property Prices Bulletin also showed the average price for a local market property was £580,412 at the start of the year, 3.2% lower than the first quarter of 2024. "The cost of renting a property is still rising fast, whilst the affordability of ownership is improving although still elevated," said Mr Hemans. "The latest figures confirm what we already know in that we are not building enough homes, which is the key driver of price and affordability pressures. "This has to remain one of the top priorities for the next States and is fundamental to our social and economic prosperity." He said 71 new property units were created over the last 12 months and 527 over the last five years, which was "significantly lower" than the target of 310 units per year, or 1,550 over five years. "Over the last quarter the number of property units fell by five," said Mr Hemans. "This explains why Guernsey house prices will continue to remain high and strong in the context of full employment, robust earnings, falling interest rates and a growing population driven by positive net migration. He added: "The scale of the housing challenge has been recognised, and momentum is building to address the issue, but over the short term this disequilibrium will ensure that prices remain elevated whilst transactions will remain below historic levels." More news stories for Guernsey Listen to the latest news for Guernsey Follow BBC Guernsey on X and Facebook and Instagram. Send your story ideas to Plans submitted for 101 homes near cinema complex Guernsey adds 'one affordable home in two years' Slight drop in Guernsey rent and house prices Guernsey Property Prices Bulletin Institute of Directors
BBC News
15-05-2025
- Business
- BBC News
Rental prices 'painful' for average Guernsey earners
Guernsey's Institute of Directors (IoD) has described the island's rental prices as "painful", leaving little money left over for tenants after paying their rent, food, and follows the release of the government's Property Prices Bulletin, which shows the average local market rental price was £2,068 a month in the first quarter of figure is 1.5% higher than the previous quarter, 8.2% higher than the first quarter of 2024 and 51.7% higher than five years ago. Richard Hemans, the IoD lead on economics, said comparing the figure to the most recent average income data showed renting would cost 55% of a persons salary. Mr Hemans said rental prices had been a "major driver of inflation" in the island and had increased "much faster than in Jersey"."The ongoing strength will continue to put upward pressure on local inflation," he said. "The cost of renting a property in Guernsey has increased by 52% since the pandemic as the population has grown and not enough properties have been built."The last figures from Q3 2024 show that rental costs consume a painful 55% of earnings, leaving little scope for discretionary spending once essential purchases and taxation is paid."He added: "Given that rental costs have likely outpaced earnings over the last six months, this metric will have deteriorated further." 'Not enough homes' The Property Prices Bulletin also showed the average price for a local market property was £580,412 at the start of the year, 3.2% lower than the first quarter of 2024."The cost of renting a property is still rising fast, whilst the affordability of ownership is improving although still elevated," said Mr Hemans."The latest figures confirm what we already know in that we are not building enough homes, which is the key driver of price and affordability pressures. "This has to remain one of the top priorities for the next States and is fundamental to our social and economic prosperity."He said 71 new property units were created over the last 12 months and 527 over the last five years, which was "significantly lower" than the target of 310 units per year, or 1,550 over five years. "Over the last quarter the number of property units fell by five," said Mr Hemans. "This explains why Guernsey house prices will continue to remain high and strong in the context of full employment, robust earnings, falling interest rates and a growing population driven by positive net migration. He added: "The scale of the housing challenge has been recognised, and momentum is building to address the issue, but over the short term this disequilibrium will ensure that prices remain elevated whilst transactions will remain below historic levels."
