Under this latest plan the yearly target for new homes built each year will drop from 300 to 127. The newly renamed Strategic Housing Indicator, formally target, should see 635 new units of accommodation until 2021, with a margin of 149 either side. Approximately 178 of these are targeted to be affordable.
The measure was passed by 38 votes to 1 during last week’s States meeting.
The States will now also reset the housing indicator every at least five years. A Housing Strategy will also be developed.
“The Committee agrees generally with the analysis and conclusion of the KPMG Report that a Help to Buy Scheme, whilst having a short term benefit for some First Time Buyer’s (FTB’s), would exacerbate longer term issues of affordability, could have a very negative inflationary impact on the housing market as a whole and carries with it risks to government investment. However, whilst remaining cautious about any steps which could result in a long-term increase in housing prices, in view of the comments of the P&RC the Committee will explore further the impacts of a deposit guarantee scheme for First Time Buyers as part of the development of a Housing Strategy,” the policy letter said.