Guernsey States may need to build more houses itself - Roffey

New Policy and Resources President Lyndon Trott has listed getting more homes built among his top priorities

The States may need to build its own housing, rather than rely on the Guernsey Housing Association (GHA), the lead politician on social housing says.

Deputy Peter Roffey said the GHA was acting "cautiously" around new building and "rapid expansion" was needed.

A report found Guernsey's housing market was in a "systemic market failure" and that "action is needed".

The GHA's chief executive said the States had to explore options to deal with "an overheated housing market".

The GHA is an independent group backed by the States to provide additional social housing as part of the States' housing programme.

Victoria Slade, who took over as chief executive in October 2022, said: "It's for the States to determine the form and function of any new entity.

"As a housing association, we are keen to do our bit, and the scale of housing need on the island means we are one part of the much wider solutions needed to tackle the imbalance in the housing market."

Figures in the report revealed an average-priced property now costs more than 16.3 times as much as average earnings, compared to 16 in Jersey and 8.3 times in England.

Mr Roffey, the Employment and Social Security Committee president, complimented the GHA on its work since its inception: "The GHA is marvellous and will continue to contribute in a major way to solving our housing problem.

"I do think they are more risk-averse and slightly more cautious, and are looking more cautiously now, reinvesting in their existing stock and perhaps expanding a bit more slowly.

"We may need to look at doing it ourselves or at other partners."

Borrowing to build

The GHA's annual report for 2022 showed the agency managed 1,033 homes and 16 new properties were built for it last year.

Guernsey's 2024 budget includes an ability for Policy and Resources to agree up to £150m in new borrowing to be spent on housing.

Mr Roffey said he made sure that money could be given to any housebuilding entity, including the GHA or the States itself.

Economic Development Committee President Neil Inder has expressed frustrations with the pace of housebuilding locally.

He said: "I just cannot believe how long this has taken.

"We have been talking about the Fontaine Vinery for five years and still it's derelict. We've talked about Leale's Yard for 15 years and it's still derelict."

Earlier this year, the GHA asked for the planning decision on the Fontaine Vinery to be delayed because of "environmental concerns".

Deputy Inder said he was frustrated that "absolutely nothing is happening in this area at all and it is depressing".

"If the GHA can't do it, I'll do it!" he said.

Some of the GHA's plans include accommodation for key workers as the island's health services continue to rely on agency staff

New Policy and Resources Committee President Lyndon Trott has signalled getting more houses built was to be one of his top priorities for the job, as he believed people were leaving because of the lack of affordable properties.

In the last two years, the States of Guernsey has spent millions of pounds purchasing a number of sites on which the GHA is set to build housing.

Mrs Slade said: "The Strategic Housing Needs Indicator, published earlier this year by the States, highlights that an additional 721 additional affordable homes would be required between 2023 and 2027.

"To put that number in context, we have grown from zero to just over 1,000 homes in 20 years, and, until recently, during a period of low interest rate borrowing and low inflation. But those economic conditions don't exist any more.

"We want and are doing our bit to try to help meet housing need, but we also have a duty to properly manage our resources within that new reality."

She added: "Our homes are getting older now, and need more investment; so we need to balance spend on new homes against increasing levels of spend on existing homes, and making sure we pay back existing and new borrowing."

Kenilworth Vinery was bought by the States in November 2021 for £6.5m and has been earmarked for 131 new properties.

The GHA wants to build 66 flats for key workers at the Domaine des Moulins, formerly CI Tyres, in the Charroterie.

However, the lack of progress means some politicians are looking at alternatives in a bid to alleviate the current housing crisis.

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