According to Jersey Opinions and Lifestyle survey 2022 (1,200 respondents):
– About half of the respondents said they did not see a dentist because of the cost
– 41% did not see a GP for the same reason
– 4% were in arrears of Mortgage payments (similarly for bills and other loans)
– 10% were not able to afford a cooked main meal every day
– 22% were not able to afford new clothes
– 12% were not able to afford meat (every second day)
– 20% were not able to heat the homes
You can see below for the breakdown, but what does this mean for those, not in immediate financial distress?
Well, for banks, it means higher loan loss provisions, fewer profits, and less bonuses, other things equal. For the financial sector, it means elevated risks and declines in the assets valuations (as this is not just in Jersey) and more prudence in the distributions and salaries. For the property sector, it means significantly less buying power and much more caution. For states, it likely means more support for those who struggle and less available funds for other initiatives, including mortgage relief.
Tough times are coming, and hopefully, human suffering will be minimized.
As to those who think that in the economy, where half of the people don’t go to the doctors because of money and a tenth of the adults can’t afford amain meal, houses can be sold for exorbitant amounts: good luck.
The authorities, though, need to watch out. The island clearly can’t afford a housing bubble. If these houses sell, it’s unlikely that the local salaries are going to pay for them. Look out for the source of funds carefully.
