Housing

Housing costs in Jersey are high by any measure and a major challenge for young families in Jersey, particularly those that do not have a “bank of mum and dad”. Average house prices are comparable with those in London, 48% higher than in the rest of the South East of England, and 23% higher than in Guernsey. Although both house prices and rents have fallen relative to earnings over the past three years, they remain high, and higher mortgage rates add further pressure on homebuyers.

These high costs are a direct result of government policy, particularly planning policies that have constrained supply. The façade in Broad Street, propped up by steel girders, is a symbol of the system’s failings — a viable scheme initially rejected for reasons later found to be unlawful. The St Saviour’s Hospital site remains derelict because planning requirements make development unviable. Derelict greenhouse sites remain unused because alternative uses are blocked. Requirements on space standards and parking provision increase costs and reduce choice, particularly for young people seeking their first home.

There has also been a failure to recognise the importance of the private rented sector, which provides a third of Jersey’s housing. Most landlords are not large investors; 36% of rented properties are owned by landlords with a single property and a further 34% by landlords with between two and five properties. In recent years the sector has faced an additional tax on property purchases, a bureaucratic registration scheme and a new tenancy law.

In the coming years, policy must focus on meeting demand through:

• Continued expansion of social rented housing.

• Reform of planning policies to facilitate development, without compromising the      Island’s natural environment.

• Streamlining the licensing regime for private landlords.

• Reviewing  the new tenancy law to identify and address any unintended consequences.

• Reviewing the impact of the stamp duty surcharge on rental properties.

• Assessing low‑cost home ownership schemes to determine which are most effective, and focusing on those that deliver results.