Scheme to help first-time buyers in Jersey launched

The £10m scheme was originally planned for 2020 - since then, inflation has risen by 23.8%

A £10m scheme to help first-time buyers in Jersey onto the property ladder has been launched.

The scheme will help eligible islanders access up to 40% towards the purchase of a home in the open market.

The government confirmed the £10m was originally allocated in the 2020 government plan - since then, inflation has risen by 23.8%.

Funding will be available "as soon as final policy development is completed", and is expected by spring 2024.

The scheme will only be available to "true" first-time buyers who have never owned property in Jersey or overseas.

Deputy David Warr, Minister for Housing and Communities, said it would help about 60 households with the initial £10m, and if successful, the scheme would be considered for extension.

He said: "The investment we're making to support first-time buyers will provide targeted assistance for islanders, particularly those on lower incomes, at a time when housing market transactions have slowed.

"We recognise that getting onto the property ladder is a challenge for many islanders - we're not saying this amount of money will improve affordability conditions in general, but the first step scheme, together with the other initiatives being delivered to support home ownership, will enable us to make a real difference to Jersey families."

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Buyers will need to provide a 5% deposit towards the purchase, and islanders already on the assisted purchase pathway will be able to register.

People eligible include those with a maximum household income of £65,000 for a one-bedroom flat, £85,000 for a two-bedroom flat, £105,000 for a two-bedroom house, £125,000 for a three-bedroom house and £135,000 for a four-bedroom house.

The government said details on how the funds would be allocated and prioritised would be "further refined over the next few months", working with local banks, lawyers and estate agents.

There will be limits on the total property costs to "ensure as many households as possible are supported".

Mr Warr said he believed the scheme would have a "ripple effect" on the housing market.

He said: "The way it's structured means this isn't the government giving out 'free money', but we'll be helping people bridge the gap to get their first step onto the housing ladder, whilst seeing a return for government in the long-term and we want to see that re-invested back into new schemes in the future.

"We're really trying to target middle to lower-income families, people who maybe only ever dreamt of ever owning their own home, we're trying to give them hope and opportunity."

'A real shame'

Sam Mezec, leader of Reform Jersey, said the scheme was "identical" to one proposed by the party in 2022, and that the government's approach to the housing crisis was "one of complacency".

He said: "It's actually almost identical to something that I proposed in the States assembly a year ago and was opposed by the government at the time.

"So the government dithering has basically meant that this scheme will be able to help fewer people than it otherwise would have and I think that's a real shame, but it's better late than never I suppose."

In line with inflation, the original £10m from June 2020 would equal £12,375,906.30 in June 2023.

Mr Mezec said the scheme needed to be extended, and that due to delays and inflation, the scheme would "help fewer people in the short-term".

"Ten million pounds will at least do something to help some people - we need to ensure that there really is a proper focus on expanding this scheme as soon as possible."

Mr Warr said the scheme was delayed as it needed to be "well thought through".

He said: "Schemes like this have to be very carefully deployed into the market, one of the biggest dangers we have is that instead of seeing prices coming down we could re-inflate the market, if we used the scheme a couple of years ago we would have basically been putting fuel on the fire of the housing market.

"Now the situation is completely different, we're seeing a complete fall in housing prices, and we're all seeing a lack of transactions going through as well... there's lots of reasons why today is a good day to launch a scheme like this which wasn't such a good idea maybe a year ago."

The government has partnered with the States-owned affordable housing provider Andium Homes to deliver the scheme.

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