A leading estate agent on one of the Channel Islands has slammed the way additional homes are now being taxed.

Since last year islanders of Guernsey who buy a property that is not their principal home, and is not the principal residence of a family member, must pay a two per cent surcharge on the entire cost of the property. 

Andre Austin, who is director of Guernsey estate agents Swoffers, has told ITV News that this has made it more difficult to be a landlord and he emphasises that “we need landlords.”

He also says rising interest rates have been a factor in investors selling properties on the island.

“On the one hand, those properties will go onto the market which is good in terms of supply because there are still challenges in supply, but on the other hand we’re losing landlords” he adds, suggesting this will make the island’s current housing issues even worse.