Minister: No 'housing crisis' in Jersey

Friday 28 April 2017

Jersey is not undergoing a housing crisis despite its growing population, which could see over 128,000 Island residents by 2035, the Minister for Housing has said.

Speaking at a Scrutiny hearing yesterday, Housing Minister and Trinity Deputy Anne Pryke said that housing provider Andium Homes’ pledge to build 1,000 new homes by 2020 was still “on track” and that the number should adequately provide for the Jersey’s increase in net migration, which sees more than 1,000 settle in the Island each year.

Despite challenges by the Panel, chaired by St Mary Deputy David Johnson, over the fact that the results from Andium, which has so far spent £86 million of a £250 million bond issued for social housing, were not yet visible, Deputy Pryke affirmed that most housing would be delivered in the latter years of the four-year plan.

“In the Andium Business plan and also with the Housing Needs Survey, we identified that the need up to 2020 was 1,000 new homes of which Andium and the other housing trusts will meet by 2020, which will be delivered in the last years because it takes a while to go to Planning, go through the process, get the site, etcetera. Unfortunately, that does take a lot of time, but it’s all set to be met towards the end of, just before 2020,” she told Express following the hearing.

Pictured: Minister for Housing Anne Pryke (above) flatly denied that there was a "housing crisis" when questioned by Deputy Montfort Tadier.

She added that her department were “not complacent”, and continue to work “closely” with Planning and the Population Office to ensure that housing demands are met.

Panel member Deputy Montfort Tadier challenged the Minister over the "critical situation with housing affordability and availability in a small Island", however, asking: "Is it time that we talk about radical policies and that if somebody wants to own 10 properties that is fine, but the tax might go up exponentially when it comes to their third or fourth property?" 

Other questions were raised over whether bedroom tax would be the "stick" in a "carrot or stick" approach to ensuring that those living in “underpopulated” homes were provided with an incentive to downsize. Deputy Tracey Vallois, meanwhile, mentioned the potential encouragement of intergenerational living.

While the Minister declined to specifically endorse some of the measures proposed by the Panel, she agreed with the need to provide incentives to “free up” four-bedroom properties, which are currently at their highest price in three years due to increased demand, according to the latest House Price Index.

Pictured: Summerland, Rouge Bouillon - one of housing provider Andium's proposed builds.

“I think different incentives we need to look at because people are living in perhaps three to four bedroom houses they own, and they need to have somewhere good to move into… We need a supply of those. We need a supply of affordable housing and social housing, so we need more across the board.

“I think it comes down to if people want to move, they’ve got to feel comfortable in finding somewhere to move to, and also that it releases some equity. So if, say, you’re going to sell your house for £600,000, for argument’s sake, and you buy another house for £450,000 to £500,000, well, ‘Is it worth me moving?’” Deputy Pryke commented.

Early results of the department’s results of a review into Letting Agents, which the Minister agreed to undertake earlier this year, were also touched upon during the hearing.

The Panel heard that out of the 180 responses received from tenants and landlords so far, one of the most common concerns involved letting agents’ ability to set a “wide range of fees” for work that may have little to no manpower implications, such as the renewal of a lease, which, in some cases, might exceed £100.

Deputy Pryke said that a response to the consultation, whose findings will inform future policy development, should be due by the end of May. When asked by Deputy David Johnson whether the review was the "prelude to licensing" Letting Agents, however, the Minister responded that she would "reserve judgement on that".