New planning covenants could see affordable housing quota

DEVELOPERS could be forced to provide a certain amount of affordable housing through new planning covenants, Housing minister Dave Jones has revealed.

DEVELOPERS could be forced to provide a certain amount of affordable housing through new planning covenants, Housing minister Dave Jones has revealed.

Deputy Jones, pictured, said that inter-departmental talks were being held by the States to introduce the new ruling in a bid to meet Guernsey’s growing housing needs.

The new covenants are currently under consideration for the States’ Housing Target Areas, but Deputy Jones said he believed they could be used at other major developments in the future to ensure housing needs were being met.

‘I think planning covenants are the way forward,’ said Deputy Jones.

‘I hope to get them on Housing Target Areas before they are developed and that will help the situation considerably. '

Comments for: "New planning covenants could see affordable housing quota"

bob

Well Done Dave

Your only 20 years too late!

But good on you for finally suggesting it!

Guern abroad

About time too.

Sometyhing I have suggested before that should be done.

concerned

This is obviously a good thing in theory, but I wait with anticipation to hear what they define as "affordable housing".

Cousin Vinny

Has long been the case in a number of places in the UK - somewhere like Guernsey it would be very interesting to see how it can work.

A number of towns in the UK require a percentage of houses in developments to be 'set aside' for social housing. The numbers in Guernsey aren't anything comparable but it had been known to create quite a difficult divide.

Plainly, if you have a close community made up of a majority who have a 400k+ mortgage and a minority that may not even be paying at all there will be tension.

Stiletto

@Dave Jones

Doesn't it take a long struggle to get Guernsey on track.

Well done, your drive at and, within Housing will ensure the job is done.

A happy Christmas to you and your family.

Ray

If I lived on a brand new 800-900K Clos I wouldn't want to be the poor sod in the token

300K two up two down round the back

John

It will be interesting to see what this entails. Sounds good but could prevent development also. Haven't we seen this before where cheap houses have been made available to first time buyers only to see them sold on at great profit to the lucky first time buyer. Look at Liberation Drive St. Saviours for instance. Every property at all ends of the Market are now being extended / redeveloped for profit. Can we put some controls down on that also. Interesting times!

Ray

John

Go to www.guernseypropertyprices.com and type in Clos des Pecqueries

You will see that those first time buyer houses sold initially in 1995 at 74K now fetch 350K plus

The idea was good but the sell on clauses were probably not tight enough

islander

Ray

if clos des pecqueries was in St Martins,you can add on another £75.000

Rustylink

Sell on clauses would merely lead to money being paid and demanded under the counter. The futility of government attempts to regulate a fair market value would be revealed.

people will always willing to pay what they can afford to buyers who wish to sell at 'true' rather than 'aministarated' prices.

Forest

Dave, appologies in advance for asking a couple of question without having read the full article in the paper today but can you clarify something for me.

If a developer is forced to create a certain number of 'affordable' homes through covenants can the purchase of these ring fenced homes be restricted to buyers who most need them, or are they simply available on the free market for anyone to buy? Secondly, is there a mechanism in place to prevent the buyers from selling them on a year or 2 later and profiting from a property that although was designed for first time buyers has inevitably become just another house in a very expensive market and as such will attract a significantly higher market price simply due to demand.

I guess what I'm saying is can you succeed in creating a 2 tier housing market where you have affordable homes existing alongside expensive ones within a high demand market and if so how is it managed and controlled?

Dave Jones

Why thank you Stiletto and the same to all of you who take the trouble to post on this forum

Happy Christmas

John

Hi Dave, Thank you for Xmas wishes but I think you have avoided answering the posts.

Dave Jones

John

I have been a little busy these last few days and on the issue of planning covenants I have covered a whole host of questions on a previous thread on this issue a short while ago. It is not possible to keep going over the same ground every time the subject is mentioned.

John

Hi Dave, I am sorry but I am quite new to this and did not realise that everything has been explained before. I do realise that you must be very busy therefore is it possible for you to give me a Lead/Link to the previous thread you mention, so that I can mull over it some time during the festive period. Merry Xmas to you also.

Dave Jones

John

I will have to ask Thisisguernsey editor to help point you in the right direction, it was several weeks ago now since the thread on HTA's Housing Target areas was on the site where I answered several question on the topic.

Ed can you help.

Thisisguernsey

I think this is the story to which you refer, Dave: http://www.thisisguernsey.com/news/2012/10/08/five-sites-identified-as-possibles-to-fulfill-growing-need-for-social-housing/

Neil Forman

John

I think this is the one DJ is talking about.

Neil Forman

Dave Jones

Good to see you still at housing, although I think it would have been interesting to see what you would have found at HSSD.

Merry Xmas to you and your family.

Neil Forman

And a merry Xmas to all other readers / contributors.

Yes even you Sparty;-)))

JM

I genuinely welcome any effort to help the affordability of living in Guernsey and affordable housing seems to be at the top of everybody's list.

I sense at least a few 'flaws' (or at least areas for greater explanation) in the 'forcing' of developers to provide affordable housing...

1. Who defines the value of what is 'affordable'?

A struggling young family on below average wages may not find the pricetag particularly appealling on a £375,000 house with 2 bedrooms (Example: Clos de Pecqueries)

Whereas a single finance professional on £100+K yearly income shouldn't have too much trouble...

2. What controls are in place for the re-sale of these properties?

If the first purchaser of a new property (at subsidised rates) then proceeds to sell the property 5 - 10 years later at full market value, they make a mint on the profit and it no longer benefits any further purchasers.

3. If developers are forced to sell a certain number of houses at a lower price - do you really think they will be built to the same standard as the other houses in the same development? No one wants to be the pauper in the 'house-that-jack-built' in the bottom corner of the estate... (for want of a better phrase)

concerned

Exactly my point (3). No one has defined what is an affordable house. Affordable for who? For it to "affordable" it should be well under 200K in my opinion.

Rustylink

Increasing developer costs simply reduces the incentive to build more houses. You can't wave a magic wand and create 'affordable housing' where land is expensive and housing construction expensive.

Greater supply or reduced demand is the only viable solutions. There will always be some seeking housing at a lower price than than can be provided by hidden subsidy or the market.

Any attempt to manipulate the incentive to develop merely makes it less likely entrepreneurs see building and redevelopment as a viable business.

Dave Jones

Thank you Thisisguernsey Ed

John I hope the link helps.

Dave Jones

Neil

Thank you for your Christmas wishes.

As for the top job at Health, I can only say I would have given it my all, I never had any doubt about the problems that face such a huge department and I think I said somewhere before that it is a 24 hour living breathing monster that will consume all the money and resources we can throw at it.

It's real assets are its staff and they are the oil in the machine, without them the Health service simply cannot function properly. There is a long haul ahead and we have to look at where we can cut out any unessasary waste as well as providing top health services at a reasonable cost. It sounds simple and I know in my heart that isn't but I will do whatever I can to help.

Neil Forman

Dave Jones

I don't doubt for one minute that you would have given your all and I am sure many would agree.

What surprised me was that a couple of the very able backbenchers did not throw their hats into the ring, there is some wasted talent there.

All the best

Dave Jones

Neil

I think Health is a job for someone with substantial Ministerial experience and while I would agree we have some very able members of this new parliament

It is not a job for a novice.

It is a huge department and as you know, one that never sleeps. The demands made on it are mirrored in an odd way by the demands made on those who run it, including the Minister and its political board, by that I mean they have to be constantly vigilant of all the problems connected to clinical need, costs and be fairly hands on when ensuring the balance that is needed in all of these competing issues is politically acceptable to the people who fund it which is us.

The people want to know that their Health service is safe in our hands (where have I heard that before?) Mark and his Board's role will be to make sure it is and if its needs extra funding, then they will have to make their case for that and fight for it in the peoples parliament

Neil Forman

Dave Jones

I agree it is not a job for a novice. I was thinking of a very experienced backbencher.

Spartacus

Neil

Who did you have in mind?

John

Hi Dave,

Thank you for arranging the link. I have been reading through it unable to stop reading for 2hrs nearly. There certainly is some stuff in there and things that scream out at me.

1) You must be fed up of explaining HTA.

2) You are trying to get things right rather than continuing to provide to the one off recipient of first time buying.

3) Neil Forman is a very intelligent guy who backs up his spiel with fact and places the fact in front of us.

4) Reward should not be given to persons who use purposely decayed glasshouses to gain benefit.

5) There has to be a north/south divide to distinguish between urban and rural. Also all services originate in the north, it is a fact.

6) Therefore Island Wide voting is a must!

It's a pity that you did not get HSSD as somebody needs to really shake it up. Pay the nurses and slash the management. Anyway......

I am going to close down for Xmas now and wish everyone a really good festive period and looking forward to constructive banter in the New Year!

Neil Forman

John

Thanks for the vote of confidence.

Have a good one. I will be doing my usual Keith Floyd impression whilst cooking for the family and In - laws, I normally cook it but seldom taste it;-))

Dave Jones

John

IWV

Is a must and we must not allow the subject to be sidelined until it is to late to do anything about it in 2016.