Leales Yard deal planned for States housing

Saturday 26 August 2023

The States could buy new homes near the Bridge in a bid to make some money and help the housing crisis.

The deal would centre around new properties being built at Leales Yard.

Policy and Resources said it is negotiating with "the entity now responsible for the site's development", and now the landowner, the Channel Islands' Coop.

JW Rihoy is the Co-op’s construction partner and work is starting this year, according to an update given in the Co op's annual report published in May.

Plans for the derelict site behind the Bridge have been in the offing for nearly 20 years, first being mooted in 2008.

Pictured: Leales Yard is planned to include residential and commercial developments. 

Last year, the Development & Planning Authority granted outline planning permission for the project which will develop over 320 homes on the site, a supermarket and retail store, a car park, and green and civic space within five years. 

It attached a strong of planning conditions before it could go ahead including around traffic concerns and the height of any new buildings.

With a planning application pending for the demolition of the existing structures - such as old workshops - P&R has said it wants the States to buy an undisclosed number of homes on an specified part of the site. 

P&R want the States to discuss it in December, after the Government Work Plan is discussed. That is calling for the States to prioritise funding for the development site, which it calls "unusual in its strategic importance".

P&R says it would help bring about "the urgently needed regeneration of the Bridge area through mixed tenure housing with a new partner and commence work on associated flood defences".

P&R President, Deputy Peter Ferbrache said this plan will need States support though and he hopes that will come about by the end of the year.

"In a move away from the purchase of land and to diversify relationships and accelerate regeneration, the States will be asked to enter into an agreement to buy newly constructed homes on part of the Leale’s Yard site, ready for occupancy and therefore providing a revenue stream. Housing supply and affordability is the most critical issue for the Island and the States will want to secure as many homes as they can reasonably afford given the pressures on social housing, partial ownership and key worker provision."

Pictured: The Leales announcement follows a recent Policy Letter published by P&R seeking support to develop the Bridge.

Deputy Ferbrache continued: "The Committee wants to do all it reasonably can to support this troubled site deliver its potential and given its history this seems very unlikely without some upfront investment, which includes support for critical infrastructure like flood defences. The negotiations are not with Co-Op but the entity now responsible for the site’s development. This site has a development framework and some planning approvals so is further progressed than many alternatives. It also has a contractor so has a realistic chance of bringing these homes to market this political term.

"The site is also central to ensuring the best use of adjacent land. The Committee is currently in sensitive commercial negotiations to support this work. It is very early in the discussions which remain subject to due diligence and achieving an acceptable financial arrangement, however the tenure of properties secured will be mixed and very likely to include key worker accommodation that will again achieve a financial return for the States.

"The Committee cannot progress this purchase without the support of the States. The States will rightly want greater detail which is under discussion which is why the final decision will not be until December at the earliest. Meanwhile, it is an in-principle decision that is necessary so that provision can be made in the capital portfolio to ensure the funds are available when needed. The Committee remains steadfastly of the view that it must explore every possible route to increase housing supply and affordability, and especially the availability of key worker homes given the exorbitant cost of agency staff in the health and care sector. It will continue to do so but always mindful of securing the best value possible."

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