Average house prices have fallen over the past year - but rental prices have grown, according to the latest figures.

In its Residential Property Prices Bulletin, external, the States of Guernsey said the average property sale price in July, August and September was £592,584, down by 2.8% compared to the same months in 2024 (£609,723).

The government said the figure was 8.5% lower than a high of £647,889 in the third quarter of 2023 and 0.7% lower than the second quarter of 2025 (£596,573).

But the bulletin said the average rental price was £2,112 a month, which represented a rise of 53% in the five years since quarter three of 2020 (£1,375).

The data also showed more local market homes changed hands in the third quarter of 2025 than during the preceding two quarters.

There was also an increase in the number of open market transactions, involving properties which can be bought by people with non-resident status on the island, although the value of homes sold remained below previous highs.

In total, 209 properties were sold in Guernsey in the third quarter 2025, an increase on the second (195) and first (166) quarters, but not as many as the fourth quarter of 2024 (188).

Stuart Leslie, head of residential sales at Savills Guernsey, said the figures appeared to show a "greater degree of consistency" was being experienced.

He said data yet to be published suggested October had been the "busiest month of the year so far".

Mr Leslie added much of the activity in the local market had been "driven by properties priced between £600k and £1m - largely due to a softening in mortgage rates".

"This slight drop, coupled with an easing in house prices, has moved things along and enabled buyers to access the necessary lending and manage their costs more effectively," he said.

The figures showed the average local market property now costs £2,112 a month to rent - 1.8% more than in the previous quarter (£2,075) and 2.8% higher than in July, August and September 2024 (£2,054).

There was also an increase in open market property transactions in quarter three with 22 homes changing hands, compared with 12 during the preceding three months.

The average value of an open market home sold in July, August and September (£1,852,500) was higher than in quarter two (£1,569,750) but lower than quarter one (£1,913,438).