Coordinated approach adopted to improve floundering housing situation

Tuesday 18 July 2023

A prioritised to-do list for housing has been recommended and agreed upon by multiple States committees. It includes looking at whacking up property tax on derelict land, greenhouses and buildings, and trying to push developers to quickly complete private developments.

Environment & Infrastructure’s freshly published Guernsey Housing Plan suggests speeding up the delivery of new housing with appropriate numbers of bedrooms in both the Guernsey Housing Association and private sector, and increasing the supply of private rental homes.

It has provided a list of 28 workstreams, most of which are to be completed before the next election in 2025, but some are underway and will be completed throughout the remainder of this year. Other actions will need to be done by future politicians and civil servants.

The Policy & Resources Committee is said to be supportive of ensuring housing remains high on the agenda and the releasing of additional cash to speed up the work recommended by E&I. This includes £210,000 for consultants to complement the work of States’ officers across different departments.

Deputy Lindsay de Sausmarez, E&I President, said this is the first evidence-based, structured look at the housing question delivered by the government and that it will be essential in addressing what remains the States’ top political priority.

The full plan and associated reports can be viewed HERE. 

Pictured: E&I have proposed six priority areas, the top being increasing the supply of homes in the public, private and rental sectors.

Housing consultants arc4 were commissioned to identify the problems of and solutions for the local housing situation.

The firm carried out similar work on the housing market in Jersey and came highly recommended, according to Deputy de Sausmarez.

It found that while the number of new housing units is growing it isn’t happening fast enough to meet the needs of current and future islanders. This is against the backdrop of soaring prices for all types of accommodation while wages struggle to catch up.

Government action is needed, it said, and the government has now committed to specific work over the coming years.

This includes looking at incentives or penalties for private developers to encourage the completion of housing projects, such as tax breaks or increased tax tariffs for unused land and plots which have planning permission but work has not been completed within three years. P&R will bring forward measures on these in the Budget this autumn.

The construction of housing for the Guernsey Housing Association (affordable housing) should proceed as planned, with hundreds of properties in the pipeline for the coming years. Employment & Social Security estimate that around £50m extra will be required to deliver on all the construction proposed.

A scheme could be drawn up to mirror build-to-let developments as seen in England to ring fence part of the housing stock just for renters, improving choice and affordability for those in that market.

Arc4 noted the rental sector is integral because of the larger proportion of people housed in these properties locally, in the absence of public or private alternatives.

E&I will also seek to strengthen the rights of tenants and landlords in the rental sector as there is currently little regulation in this area. This could include rent deposit protection and legal notice periods for changes to lettings agreements.

This is on top of encouraging ‘right-sizing’, where people either move into or out of larger properties after a change in housing need.

Pictured: What States committees need to do this year on housing.

Deputy de Sausmarez said: “For the first time we have got an evidence base on which to base some decisions on prioritization.

“We've all known for a long time that there are some serious issues in the housing market and the various parts of the housing market, but this is the first time we've been able to look at the issue in the round and we've been able to use evidence in order to help us understand which strategic interventions we need to focus on."

Consensus has been reached with other States departments on the work required, she added: “We didn't publish this plan without consulting with the other committees. We worked with those other committees in order to confirm that they agreed with the prioritisation and they were happy for us to prioritise those actions."

Stakeholder contributed heavily to the research, but more will be required as and when formal proposals are tabled by the States, Deputy de Sausmarez said.

The next intake of deputies is being asked to explore models for allowing older people to live at home for longer, introducing support for homeowners or landlords to improve their properties - particularly if physical wellbeing is being impacted because of them - and expanding the States’ housing needs model to include key workers.

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