Housing should be a priority for next administration, says financial advisor

It's after government's housing report reveals average house price on Island now nearly £400,000

The average house price on the Isle of Man rose to nearly £400,000 last year.

The Cabinet Office has revealed the figure in its latest annual housing report.

Now, full disclosure here, because I have openly talked on Manx Radio before about my own personal struggles to get on the housing ladder.

And for those in a similar position to me, it doesn't make for a pretty read.

In 2025, the average house price in the Isle of Man rose by 3.6 percent compared to the previous year, and now apparently sits at £393,735.

And yes, that's only the average house price, but there are now also fewer and fewer properties being sold at the lower end of the price bracket.

In fact, the number of houses being sold for less than £250,000 went down by two percent last year, making up just 14 percent of all sales here.

So is it as bleak as it might seem?

I asked Paul Chase, who's a financial advisor at Financial Options, whether this has had an impact on the market:

Housing is something that's repeatedly been talked about on the Isle of Man.

And it's something that was one of the top priorities who stood in the 2021 General Election, as political commentator Alistair Ramsey told Phil Gawne:

So I suppose the question is, given the perceived lack of progress on the issue of housing in this administration, is it an issue again this time round?

I asked Paul Chase:

I did ask Government for a response, and had this statement in return:

"The Isle of Man Government recognises that housing affordability and supply remain significant challenges, which is why a range of measures have been introduced during this administration to support first-time buyers and increase the delivery of affordable homes.

"In 2022, changes were made to the Island's first-time buyer assistance schemes to reflect economic conditions and improve accessibility. These included updating eligibility thresholds, reducing the minimum equity loan available through the First Home Fixed Scheme from 20% to 5%, removing all purchase price and property type restrictions under the First Home Choice Scheme, and making it easier for participants to repay their equity loans in smaller amounts.

"Alongside these changes, affordable housing provision has continued to increase. Between 2021 and 2025, there was a net increase of 134 affordable homes across the Island. Of these, 105 were delivered through Section 13 agreements with private developers and 29 were provided directly for social rent by public sector housing providers.

"These figures represent the net increase in affordable housing stock and do not include replacement developments where new homes were built in place of existing accommodation. For example, the Peel Road apartment development replaced the former Lord Street flats and therefore did not increase the overall number of affordable homes.

"The current administration has also committed to supporting the delivery of a further 1,000 affordable homes between 2025 and 2035. A number of developments are already progressing through planning, design and development stages. While many of these homes will be delivered over a longer timeframe and under future administrations, much of the enabling work, site identification, policy development and project progression has been undertaken during the current term.

"Further improvements to support home ownership are also on the agenda for Tynwald this month, with proposed changes to the First Home schemes due to be considered by Members."

We're just weeks away from the General Election now (if you're not already sick of hearing me banging on about it!), and it'll be interesting to see how much of a part housing plays in who is, or isn't, elected on Thursday 24 September.

You can find out more about the upcoming election here.