Deputy calls to address unfairness of assessment of buyers' "credit worthiness"

Monday 31 December 2018

A St. Saviour Deputy has published a proposition to address what he describes as "unfairness" in the way buyers' credit worthiness is assessed, with mortgage payments being taken into account but not rental payments.

Deputy Jeremy Maçon wants the Council of Ministers to hold a consultation around the potential issues adopting a system similar to the UK would raise.

He explained that when businesses assess people’s credit worthiness, their rental history and their payment of parish rates should be taken into account. 

Deputy Maçon said: "Currently there is an unfairness in that if you make regular payments on accommodation called mortgage payments that’s taken into account when assessing creditworthiness but when you make regular payments on accommodation called rent this is not always taken into account depending on providers. This proposition follows similar moves in the UK parliament seeking to address this unfairness." 

Video: Deputy Maçon explained the reasons behind his proposal on his Facebook page.

"Housing is one of the biggest issues affecting Islanders," the Deputy added. He said that during one of the elections hustings, a young professional said that despite being from Jersey and having training herself in the island, she was looking to leave the island she felt she could never afford a property here. "I’ve heard many constituents express the view that the rent they pay can be more expensive than mortgage payments and that this should be taken into account," Deputy Maçon said.

If the consultation reveals an endorsement of Deputy Maçon's suggestion, he has asked the States Assembly to vote to bring the changes forward no later than by the end of 2019.

The St. Saviour Deputy is hoping that the proposition, if adopted, will help get more people on the property ladder, although he admits it won't be a "silver bullet." "The issues that influence the affordability of Housing are of course an intricate web from migration policy, the zoning of land, the planning process, being able to save up deposits and so on. Which are being examined during the life of this assembly," he said. 

 Deputy Maçon's proposition for the consultation will be debated on 29 January.