Over the past few years, the global rise in remote working has allowed many professionals to enjoy greater freedom and flexibility. However, those choosing to call Jersey home must navigate the island’s high cost of living. The inflated housing market, taxation system, and overall cost of goods and services combine to make Jersey one of the most expensive places to live and work. Here, we delve into the factors that contribute to the island’s steep expenses.
Housing Affordability in Jersey A significant contributor to the high cost of living in Jersey is the housing market. Home prices on the island have consistently outpaced wage growth, rendering property ownership a daunting prospect for many. For example, a look at the housing market history reveals that average house prices have roughly doubled every decade. This exponential growth has led to an affordability crisis, with young or less affluent individuals finding it increasingly challenging to secure a foothold in the property market.
This issue is further exacerbated by the reliance on what’s often termed “the Bank of Mum and Dad”. Given the high deposit requirements and associated costs of buying, families are often compelled to assist their younger generations financially. Those without such familial support are at a disadvantage, suggesting an emerging inequality in the Jersey property market.
Tax Considerations in Jersey The taxation system in Jersey also adds to the expense of living on the island. In contrast to the digital nomad’s need to understand their tax residency status, Jersey residents are subject to a tax system that, while straightforward, can significantly impact income. While Jersey tax rates might appear competitive when compared to the UK, the lack of tax-free personal allowances results in a relatively higher tax bill for the same level of income.
Goods and Services in Jersey Lastly, the cost of goods and services in Jersey contributes to its high cost of living. Everything from groceries to utilities tends to be more expensive compared to mainland UK due to the added logistics of supplying an island.
Legal Services and Professional Advice in Jersey Alongside these considerations, the expense of obtaining professional services in Jersey, whether it be for tax advice, legal consultation, or contract review, is significantly higher. This adds to the overall expense of operating a business or managing personal affairs on the island.
Navigating the Jersey Landscape Living and working in Jersey can offer an unrivalled quality of life, but it is essential to understand the financial implications. The island’s housing market, tax system, and the cost of goods and services all combine to create an environment that is expensive to navigate. To address this issue, a more sustainable approach to housing affordability and better support for low to middle-income earners are necessary. While the beauty and charm of Jersey are undeniable, the high cost of living is a reality that must be acknowledged and addressed.
For more information on the expensive property in Jersey, visit Benest & Syvret’s article here.