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States to investigate spare room tax breaks

States to investigate spare room tax breaks

Wednesday 02 November 2022

States to investigate spare room tax breaks

Wednesday 02 November 2022


The States have unanimously supported looking into offering tax breaks to encourage homeowners to rent out spare bedrooms to alleviate current housing pressures faster.

Deputy Heidi Soulsby’s (pictured above) amendment to the 2023 budget, which does not include houses already rented out to multiple workers, was successful following debate.

The Policy & Resources Committee must now come back to the States with options for a room-to-let annual tax-free allowance or “other benefits for personal taxpayers who let a room, particularly for key workers”, no later than March 2023.

Deputy Soulsby told the Assembly that a substantial number of households, over 50%, have at least one spare bedroom, with a good number having at least two.

“There is untapped potential to house more people, even if temporarily,” she said, “it will always be up to the individual; we’re not taking away personal liberties”.

“This is making sure no stone is unturned in trying to sort out the problems we literally have at the moment.”

housing.jpg

Pictured: Thousands of homes in Guernsey have unoccupied extra rooms. 

Several committee presidents expressed their support of the amendment; Deputy Victoria Oliver, President of the Development & Planning Authority, said she had previously raised a similar idea, but issues associated with planning, insurance and DBS checks had been highlighted by civil servants, and that further problems could be highlighted by law officers down the line.

Nevertheless, she supported the proposal, saying: “We’re in this situation now, we’ve got these spare bedrooms now… the figures are astonishing”. 

E&I President Deputy Lindsay de Sausmarez said she shared those frustrations, saying case studies had previously been put forward of similar effective schemes which work in the UK. 

Home Affairs President Deputy Rob Prow said there was “no impediment in the amendment whatsoever which would be caused by the population management regime”. 

HSC President Deputy Al Brouard said: “We do struggle to find staff at the moment. I think this is a welcome addition to the toolbox”. 

And Deputy Andrea Dudley-Owen, President of ESC, said her committees staffing and housing needs for key workers are somewhat different to that of HSC, but supported the amendment nonetheless.

Deputy Gavin St Pier

Pictured: Deputy Gavin St Pier seconded the amendment.

Deputy Sasha Kazantseva-Miller commended deputies for supporting the amendment “knowing that such ideas didn’t make it through the civil service process”.

“Sometimes this has to manifest through the political lobby… no matter how challenging or difficult we need to look at them.”

Deputy Neil Inder did express concerns that not all spare bedrooms would be completely unused by homeowners, but echoed concerns about proposals not getting through the civil service.

“If some officers don’t want to do something many ways are found not to do things - all I would say to them is push forward,” he said.

Deputy Gavin St Pier added: “In terms of the objections, frankly I don’t see those as really being matters in which government needs to become deeply embroiled... it really isn’t for government to sweep away every issue for individuals who should be capable of making decision themselves in terms of insurance and DBS checks.

“It is up to the homeowner to decide whether to proceed or not.”

How they voted

Pour: Aldwell, Blin, Brouard, Cameron, De Lisle, De Sausmarez, Dudley-Owen, Dyke, Fairclough, Falla, Ferbrache, Gabriel, Gollop, Haskins, Helyar, Inder, Kazantseva-Miller, Le Tissier, Le Tocq, Leadbeater, Mahoney, Matthews, Meerveld, Moakes, Murray, Oliver, Parkison, Prow, Queripel, Roberts, Roffey, Snowdon, Soulsby, St Pier, Trott, Vermeulen.

Absent: Burford, Bury, McKenna, Taylor. 

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