The average house price in the island increased to £292,043 last year, according to new government figures.

The report has lifted the lid on the Manx housing market during 2019 and indicates that it is still tough for young people to afford to get on the housing ladder.

In a section on housing affordability for young people it states that ’whilst the earnings ratio has improved since 2011, home ownership will remain difficult’.

The report makes clear that alongside general affordability of housing for all individuals, ’the ability for younger people to be able to afford a house is important to the housing market.

The health of the housing market depends on new entrants being able to purchase properties, allowing others to move through the system. Further to this, ownership of property aids in allowing younger people to establish themselves on the island’.

Compiled by the economic affairs division in the Cabinet Office, the Isle of Man Housing Market Review 2019 contains a range of data on average house and flat prices, market distribution, trends, housing stock, lending and affordability, and how many transactions are taking place in different sectors.

The report indicates that:

lThe average price of a property sold was £266,000, an increase of 2.9% over 2018

lThe average house price was £292,043, an increase of 4.5%

lThe median house price was £264,950, an increase of 6%

lThe average flat price was £151,104, an increase of 2.7%

lThe median flat price was £139,950, an increase of 5.2%

Over the period from 2010 to 2018, the proportion of houses sold under £250,000 has remained broadly the same, however in 2019 there was a ’significant reduction in this category, with an even greater increase in those priced between £250,000 and £500,000’.

But the report also indicates that sales in the £500,000 to £750,000 bracket ’have decreased from their peak in 2014 but have stabilised in recent years’.

Sales of houses over £1million increased in 2019 to the average over the period.

The government’s report looks at figures for last year.

Since lockdown, there is a lot of anecdotal evidence that the property market has boomed, which has in turn led to a rise in prices.

We will have to wait for a year to see whether the apparent surge in prices is reflected in official statistics.