Changes to the Open Market Housing Register will make it easier to add or remove properties from the list, says E&I .
The legislative changes have been proposed by the Committee for the Environment and Infrastructure after the States agreed to build an inscriptions policy as part of the wider Guernsey Housing Plan.
The new policy will better match supply and demand for Part A properties, says E&I.
By introducing ‘Inscriptions In Principle’ (IIPs) and facilitating transfers, the committee hopes that more suitable properties will become available on the Part A register.
These ‘Part A’ properties refer to specific properties which are private homes intended for single family occupancy. E&I says changing the legislation around adding or removing them from the Open Market Register could bring in an additional £1.5 million per year, based on the current fee structure.
“The levies for new Part A inscriptions have the potential to raise at least £1.5m per year, as per the current fee structure. This general revenue can then be used to fund other States’ agreed priorities, such as the development and delivery of affordable housing units” – E&I Policy Letter.
Through the proposed legislative changes, E&I is suggesting changing the regulations and processes surrounding the Open Market, rather than the market itself. It says the market will still function based on supply and demand, but the rules governing how properties enter that market would be adjusted.
They’re looking to encourage new builds with the IIPs system which is designed to encourage developers to build new homes that qualify for Part A status. Developers could get approval in principle for ‘Part A’ registration before the building is even finished, which would make the whole process smoother.
The ability to transfer a ‘Part A Inscription’ from one property to another could free up existing ‘Part A’ properties, said E&I.
For example, someone might transfer the status from their large family home to a smaller, newer property they’ve built, making the larger home available to another Open Market buyer.
E&I is also suggesting the ‘Regularisation of Anomalies’ which are existing properties that have parts designated as Local Market and parts as Open Market (Part A). The changes aim to allow these “anomaly properties” to be fully designated as Part A.
“The Committee recognises the significant contribution that the Open Market and its residents make to the community and the economy and seeks to strengthen its positive role as an economic enabler for the Island, particularly through inscriptions onto the Open Market Housing Register, whilst ensuring that the Local Market remains protected” – E&I Policy Letter.
While the number of such properties is said to be small, E&I said this change will reduce the number of homes available to those who qualify for the Local Market. These changes are designed to encourage more properties to become available on Part A of the Open Market, making the process easier, without necessarily building new homes directly.
The legislation from E&I will need to go before the States before approval. No date for that has been set yet.