States overpaid for housing sites - Mahoney

Guernsey States bought Kenilworth Vinery for £6.5m in 2021

The States of Guernsey "paid too much" for a number of sites earmarked for affordable housing, according to a former member of Policy and Resources (P&R).

Deputy Dave Mahoney was on P&R when the purchases of Kenilworth Vinery and the Guernsey Business Park were approved, but voted against both.

Guernsey Housing Association (GHA) CEO Victoria Slade said there were a number of issues with these sites that prevented them from being developed.

In a statement P&R did not address criticisms the States overpaid for the sites, but said "the intention absolutely remains that they will be developed for housing".

Mr Mahoney was one of two members of P&R - a five-strong committee - who voted against the purchases of Kenilworth Vinery and the Guernsey Business Park, alongside other sites which were bought as part of efforts to alleviate the island's housing crisis.

On the purchase of the Kenilworth Vinery for £6.5m he said he spoke to people in the building industry to see what they thought before voting on it: "They gave their honest appraisals and I then reported back that I didn't think it was a suitable site."

Deputy Mahoney resigned from P&R before a vote of no confidence in the committee in December 2023

Recently details of flood defences for the area have been released by the States, but Mr Mahoney said he was "cynical" about how quickly they would actually be built.

Mr Mahoney praised the new management at the GHA for its approach to building on the sites recently bought by the States: "We need the States to get out of her way and let her get on with these things."

Victoria Slade took over as CEO of the Guernsey Housing Association in 2023

The GHA has been criticised by some politicians for being "risk-averse" when it comes to building new houses, with the States now investigating creating another entity to build properties.

The organisation's CEO Victoria Slade criticised the decision making around some of the sites bought for the GHA to build on.

"Three of these sites have constraints. Some of the due diligence on these sites probably could have done earlier.

"The will was there to do something quickly, but the constraints were known and should have been picked up earlier and by not doing that, expectations have been raised."

Guernsey Water said it was working closely with the GHA and other stakeholders on how Duval Vinery might be able to be developed for housing

Mrs Slade said: "We're not a developer, or a construction company, but we do exist to look after our tenants and build new houses and we want to help solve the housing crisis.

"We're not being difficult, we're not being awkward and we are trying to deliver homes on other sites."

Work is currently under way to build at at the old CI Tyres site, where plans to build 57 new homes were approved earlier this year.

In her comments on the review of the island's planning policies she stated Duval Vinery, which was bought for £1.95m in 2022, could not be built on until the sewage dumping point next door was moved.

Fontaine Vinery, where there are plans for about 90 new homes currently has a commercial tenant, while the Guernsey Business Park is not zoned for housing and Kenilworth Vinery is at risk of flooding.

She said these factors, amongst other things were preventing development on these three sites.