Guernsey housing market in 'systemic failure'

An average-priced property costs 16.3 times as much as average earnings

Some of Guernsey's housing market is in "systemic market failure" and "action is needed", according to experts.

New figures show an average-priced property now costs more than 16.3 times as much as average earnings, compared to 16 in Jersey and 8.3 in England.

Specialists arc4 have reviewed the market to help inform Environment and Infrastructure's (E&I) housing plan.

E&I President Lindsay de Sausmarez said the challenges facing the market "are deep-rooted and complicated".

In 2022, the average priced property was £599,813, 16.3 times as much as the year's average earnings of £36,982.

The authors of the report stated "Guernsey has suffered from systemic unaffordability for more than two decades" and "it will need to become more responsive to residents' needs and therefore more affordable".

The Guernsey Housing Plan is recommending looking at ways of encouraging people with planning permission to build property.

There are also recommendations of taxing derelict land, greenhouse sites and unoccupied buildings.

The two reports from consultants arc4 Limited cost £39,950.

Deputy de Sausmarez said the housing plan painted a "realistic picture of the scale of the challenges we face, but, if we can deliver these actions, this is not insurmountable".

She said: "It requires States committees, private developers and landlords to pull together to bring about positive change."

Other parts of the new plan include defining what the term key worker means and developing the States' approach to supporting their housing needs in the medium to long-term.

It also talks about "considering opportunities to use modular constructions".

The reports also analysed the number of social rented properties in Guernsey and showed they made up 8.7% of the local market.

Arc4's report stated it was a "small sector compared to other jurisdictions", with social rented making up 13.1% in Jersey and 17% in England, which the authors of the report said "highlights the under-provision in this housing sector".

Rent in the private sector has increased by 44% since 2009, and also risen sharply since the Covid-19 pandemic, with the average rental price in 2009 being £1,262, compared to £1,817 currently.

Arc4 said that was twice what it considered to be sustainable.

One of the recommendations in the report was that more work should be done to look at rent control.

Follow BBC Guernsey on Twitter and Facebook. Send your story ideas to [e-mail].