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Consultants' report affirms States decision on GP11

Consultants' report affirms States decision on GP11

Monday 29 April 2024

Consultants' report affirms States decision on GP11

Monday 29 April 2024


A report on the delivery of Affordable Housing in Guernsey backs up the thinking behind freezing GP11, suggesting that decision will lead to more units being built.

Compiled by independent consultants arc4, the draft was shared with deputies ahead of last week's States meeting when they decided to effectively freeze GP11 for up to five years.

The controversial policy required housing developments of 20 or more units to hand 20% - 30% of the developable land over to the Guernsey Housing Association for social housing.

Now the decision has been made to freeze that requirement for five years, Policy and Resources has told developers to get building.

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Pictured: Deputy Lyndon Trott led the charge in encouraging developers to "get building".

“States Members have listened to the business leaders in our construction sector, we’ve recognised their concerns about GP11, and we’ve acted to remove that barrier because getting more houses built is a top priority,” said Deputy Lyndon Trott, President of P&R. 

“Now I am calling on developers and the construction sector as a whole to grasp this opportunity. There are significant sites with the potential for a lot of housing, and with planning permission in place, but we’ve been told time and again that developers can’t justify proceeding with them because GP11 puts too big a cost onto the projects.  

“That cost is gone. Let’s get our building sector building again, so we can meet the high demand for housing and alleviate some of the pressures our community has faced for too long.” 

The report which was used by some deputies in their decision making ahead of the vote on Thursday, made clear that "arc4 would agree that a reduced threshold should be applied given the size of sites that historically are brought forward. If a reduced threshold is applied, then more sites will be required to contribute toward Affordable Housing. This, in turn, could enable a reduction in the overall Affordable Housing contribution requirement".

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Pictured: arc4 has made clear that the previous threshold has diminished the influence the GP11 policy has had on the development of affordable housing. 

The report also said that "if the threshold is not significantly reduced, then an amended policy will still not deliver Affordable Housing".

arc4 was commissioned by the Committee for the Environment and Infrastructure to review the approach to delivering Affordable Housing. Its focus was whether the Policy GP11 approach remains viable, achievable, and relevant, and what alternative mechanisms may be used to secure the delivery of Affordable Housing through the land planning system.

arc4 has made clear that private developers "play a crucial role" in contributing to the provision of Affordable Housing "not only to meet regulatory requirements but also as a commitment to social responsibility, community development, and long-term business sustainability."

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Pictured: Deputies had sight of this draft report before last week's vote on suspending GP11.

The report states that "as key players in the construction and housing industries, (developers) have a social responsibility to contribute to the well-being of communities" and that "developers who actively engage in Affordable Housing initiatives can build a positive reputation within the community" which "can lead to increased trust and goodwill, which may benefit their brand and future business prospects".

There was one warning over the delivery of Affordable Housing through the private sector though, with an example given that "if developers/landowners do not contribute, then the full costs of building Affordable Housing will fall to the States of Guernsey through the general tax take".

The arc4 report, available to read HERE, is an abridged version. A final version will be published when ready.

READ MORE...

GP11 removed: P&R tells developers to “grasp this opportunity”

OPEN LETTER: Why GP11 hasn't worked

Row over proposed changes to housing planning law

GP11 functioning as intended despite viability woes 

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